Indirect Spend Categories Definition
Indirect spend is often defined as any expenditure that is not related to direct costs. This includes operational expenses such as rent, utilities, and employee salaries.
However, indirect spend can also include other important categories such as marketing and advertising, which are necessary for business growth but can be difficult to track.
category definition can help businesses better understand and manage their indirect spending. Below are three common indirect spend categories and their definitions:
1. Rent: All payments made for the use of commercial real estate, including office space, warehouses, and retail storefronts.
2. Utilities: Monthly bills for water, gas, electricity, trash removal, and other services used by the business.
3. Employee Salaries: Wages paid to full-time, part-time, and contract employees, including all benefits and taxes.
In addition to these three categories, businesses may also want to track other types of indirect spending such as marketing budgets or IT costs. Having a clear understanding of what qualifies as an indirect expense can help businesses save money and make more informed decisions about where to allocate their resources.
