The basic differences between direct cost and indirect cost are given as under:

• The cost which is easily apportioned to a particular cost object is known as Direct Cost. Indirect Cost is the cost that can’t be charged to a particular cost object.
• Direct Cost benefits the single product or project. Conversely, Indirect Cost benefits multiple product or projects.
• The total of all the direct cost results in prime cost whereas the result of all the indirect cost is known as overheads.
• Direct Cost is traceable while Indirect Cost is not.
• Direct cost is subdivided into the direct material, direct labor, direct expenses. On the other hand, indirect cost is subdivided into production overheads, administration overheads, selling & distribution overheads.