Indirect costs are best described as expenses that ...

Indirect costs are best described as expenses that ...

• A. Are charged per animal
• B. Directly generate revenue
• C. Support research activities but do not directly generate revenue
• D. Are always fixed costs

Answer: (C)

Indirect costs are overhead expenses that support the research program but aren’t tied to any one project or revenue-generating activity. They cover things like facilities, utilities, administrative support, maintenance, and compliance—costs that benefit multiple projects rather than a single animal or grant. Because they don’t directly generate revenue themselves, they aren’t charged per animal and aren’t about producing income. They’re typically allocated to projects through an indirect cost rate. They can be fixed or variable, but their defining feature is that they support research activities rather than directly producing revenue.

Indirect costs are overhead expenses that support the research program but aren’t tied to any one project or revenue-generating activity. They cover things like facilities, utilities, administrative support, maintenance, and compliance—costs that benefit multiple projects rather than a single animal or grant. Because they don’t directly generate revenue themselves, they aren’t charged per animal and aren’t about producing income. They’re typically allocated to projects through an indirect cost rate. They can be fixed or variable, but their defining feature is that they support research activities rather than directly producing revenue.