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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:
View Full Document. Indirect costs of production or manufacturing overhead costs: Are considered indirect costs those costs that are not technically or economically controlled individually but are caused by the production process. Are controlled as a global figure.