True or false: Indirect overhead costs include expenses related to the operation of the main office.

Indirect overhead costs encompass expenses that cannot be directly attributed to a specific project or service but are necessary for the overall operation of the business. This includes costs related to the operation of the main office, such as utilities, office supplies, administrative salaries, and other general expenses that support the functioning of the organization as a whole.

These costs are essential for maintaining the infrastructure where projects are planned and executed, even though they do not directly correlate to a particular job or task. Hence, categorizing the expenses of the main office as indirect overhead aligns with standard accounting practices in cost allocation. Understanding this concept is vital in assessing project costs and ensuring accurate budgeting and financial planning in the business.