Indirect costs are made up of costs that cannot be known or measured beforehand but may come up in the process of implementing a system.

• A. True
• B. False
• C. Sometimes true
• D. Not applicable

Answer: (A)

Indirect costs are the overhead and shared expenses that aren’t tied to a single deliverable, such as administrative support, facilities, utilities, and general IT governance. In a system implementation, you usually can’t know the exact amount of these costs upfront because they emerge from how the project unfolds—things like additional training needs, more integration work, downtime during migration, or extra management effort. Because they aren’t directly attributable to one specific task and can vary as the project progresses, they can’t be known or measured precisely before starting. Teams typically estimate them and build in contingency or allocate them through an indirect cost pool, updating those estimates as the project unfolds. That’s why this statement aligns with how indirect costs are handled in practice.