Indirect costs are those costs that are incurred for common or joint purposes. These costs benefit more than one cost objective and cannot be readily identified with a particular grant, contract or other activity of the organization. After direct costs have been determined and assigned directly to federal awards and other activities as appropriate, indirect costs are those remaining to be allocated to benefited cost objectives. Indirect costs are charged to federal awards using the federally negotiated rate of the institution. An indirect cost rate is a method for determining fairly and conveniently what proportion of indirect cost each program should bear. It is the ratio between the total indirect expenses and some direct cost base.
UW-Superior's indirect cost rate is 53.5% and is typically applied to salary and fringe costs only.