What are indirect costs in incident management?

Indirect costs in incident management refer to expenses that cannot be directly tied to a specific incident activity yet are essential for providing overall support during an incident. This includes costs associated with resources that assist multiple operations, such as administrative support, facility maintenance, utilities, and other overhead expenses that ensure the incident management team can function efficiently.

Understanding indirect costs is critical for budgeting and managing resources effectively during an incident. These costs support the infrastructure that makes the incident response possible, even though they do not correspond directly to a particular task or field operation. By accurately accounting for indirect costs, agencies can better understand the full financial implications of incident management operations and ensure adequate funding and resources are allocated to support all aspects of the response.