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I hear that indirect costs cannot be charged on certain types of costs. What are these costs and why can I not charge indirect costs against them?

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I hear that indirect costs cannot be charged on certain types of costs. What are these costs and why can I not charge indirect costs against them?

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10

Certain types of costs (activities) require relatively minimal administrative support compared to the amount of dollars spent. These costs would distort the indirect cost process and are excluded from the calculation of the indirect cost rate.

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