Member Questions

Direct and Indirect Costs

Written by LERN | Mar 27, 2018 3:45:09 PM

 

 

Question:

Do you have definitions for direct and indirect costs? Thanks

Answer:

Here is how LERN defines direct and indirect costs:

Direct costs include the costs of promotion and production for a course or for your total program, depending upon what you are analyzing. These two expenses are called direct costs because they are required to be able to provide a course or event. Promotion costs are the costs of marketing and publicity, primarily your brochure printing and mailing costs. Production costs are costs associated with providing the course (or program) and include instructor compensation, any costs you pay for facilities, supplies or equipment needed for the activity, etc.

Other costs are called, in LERN's financial model, G&A (general and administrative or indirect costs). These costs include staff salaries, office expenses, supplies, etc.

Thanks for asking, and let me know if you need more information.