Indirect costs are cost not directly transferrable to specific products or sales. Companies face many different indirect costs. A short list of examples of indirect costs is listed below.

• Wages for administrative staff

• Rent for buildings

• Energy consumption

• Business travels

• Depreciation of machinery and other assets

• Work cloths

• Etc.

In the P&L, the indirect costs will get debited as a cost. After having debited both the direct- and indirect costs, the net margin before finances and taxes are visible.