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An indirect cost rate represents the ratio between the total indirect costs and benefiting direct costs, after excluding and or reclassifying unallowable costs, and extraordinary or distorting expenditures.ooking at it another way, indirect costs are those costs that are not classified as direct. Direct costs can be identified specifically with particular cost objectives such as a grant, contract, project, function or activity. Direct costs generally include:
benefit-cost ratio is one of the project selection method. Aditya (4years ago): C.These are complex mathematical formulas and algorithms that are used to predict the success of projects, the variables within projects, and the tendencies to move forward with selected project investments.