The full cost of an instructional activity or a research project is the sum of the direct cost that can be specifically identified to the project plus the associated indirect cost.
Direct and indirect costs are distinguished by whether the cost can be identified with a particular sponsored project, not the nature of the cost.
Direct Costs
Direct costs can be identified with a particular sponsored project or can be assigned directly to such activities relatively easily with a high degree of accuracy. These costs are easily attributable to individual grants.
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- Salary support and benefits for faculty, research staff and postdocs working on the project
- Stipends for graduate students assigned to the project
- Laboratory supplies, chemicals, and glassware purchased for a project
- Travel to a conference to present results of the project
- Certain research equipment, including computers
- Publication costs
Indirect Costs
Indirect costs (also called Facilities and Administrative (F&A) costs or overhead costs) are incurred for common or joint objectives. Therefore, they cannot be identified readily with a particular sponsored project.
These costs represent genuine costs of performing research that are not easily attributable to individual grants. Think of these charges as applying to things that would not need to exist or be used as extensively if MIT did not conduct research.
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- Building utility or maintenance costs
- Salary of a departmental administrator
- Library costs
- Depreciation of research equipment and buildings
- Laboratory utilities (light, heating/cooling, power)
- Hazardous chemical and biological agent management
- Internet
- Data transmission and storage
- Radiation safety
- Insurance
- Administrative services
- Compliance with federal, state, and local regulations (e.g., Institutional Review Boards (IRBs) for human subject or animal research)
Updated December 19, 2024