Specifies an additional percentage to cover benefits or administrative costs.

Direct Unit Cost * (1 + (Indirect Cost% / 100)) = Unit Cost.

For an employee with an annual salary of LCY 104,000 the direct unit cost per hour is LCY 50.00. The employee's benefits equal an amount of 30% of the salary. The following table shows that the unit cost is 65.00.

Cost Type Cost

Direct Unit Cost

LCY 50.00

Indirect Cost %

30% = LCY 15.00

Unit Cost

LCY 65.00

Tip

See Also

Reference

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