Understanding Direct and Indirect Costs in Manpower Departmental Costing

Dear Folks,

I need to determine the department-wise direct and indirect costs related to manpower. What elements should be covered in Direct Costs? And what should be covered in Indirect Costs? Please suggest.

Thanks,
Amit

Amit:
For example, if you consider Recruitment Department, you can identify both direct and indirect costs as follows:

Direct Cost
- Salaries paid to all the Recruiters (including PF)
- Any bonuses paid

Indirect Cost
- Advertising Cost
- In Newspaper
- In Portals
- Recruitment Consultant fees paid for sourcing of profiles

Intangible Items
- Table and Chair Cost
- Computer Cost

I hope this helps.

Cheers,
Nikita

Nikita,

Thank you for your reply. It will definitely help me to a certain extent. Do you have any format sheet on Manpower costing department-wise (Direct + Indirect)? If you have, please send it to me at [Login to view].

Once again, thanks,

Amit