Lower overall effective indirect cost rate may be negotiated to remove commodity cost from the indirect cost c alculation. Direct costs are typically associated with measurable tangible cost objects. Direct Cost Vs Indirect Cost Direct Costs And Indirect Costs Are Both Important But If We Look Inherently We Will See That There Directions Cost Sheet Cost It does not form a part of a finished product. . Examples of direct costs. The essential difference between direct costs and indirect costs is that only direct costs can be traced to specific cost objects. It is important that your organization calculate whether or not that 10 percent rate would be sufficient to cover your indirect costs. In general the full cost of the NSLP and SBP includes both direct and indirect costs. However if the amount is significantly minor the cost of these materials can be directly charged to expense as incurred during a period. Savings income a