Capella University Direct and Indirect Costs Financial Management Discussion Direct and Indirect Costs Organizations incur both direct and indirect costs.

Capella University Direct and Indirect Costs Financial Management Discussion Direct and Indirect Costs

Organizations incur both direct and indirect costs. As your Budgeting and Financial Management for Nonprofit Organizations text illustrates, direct costs are usually associated with some type of objective cost (for example, a project, project staff, and supplies).

Indirect costs are normally not associated with these types of objective costs. Instead, indirect costs contribute to the accomplishment of mission and goals, but are not directly tied to a particular project or activity.

These different types of costs require different strategies for estimation.

In your initial post, discuss the different approaches that can be used to estimate direct and indirect costs. Support your post with sources and cite them according to current APA guidelines. Be sure to critically evaluate the concepts and related literature. Address any pro and con arguments.