Pricing & costCost element

IH

Indirect Hours

Definition

Indirect Hours are labor hours that cannot be directly attributed to a specific contract or project and are instead allocated across multiple cost objectives. IH includes time spent on general management, training, corporate functions, and other indirect activities.

IH tracking affects indirect rate calculations and cost accounting compliance. Understanding IH classification helps contractors maintain accurate timekeeping and cost allocation. Proper IH management supports compliant indirect rate structures and audit readiness.

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