What term describes expenses that are spread across all projects, such as office rent?

The term that describes expenses spread across all projects, such as office rent, is known as indirect costs. Indirect costs are those expenses that are not directly tied to a specific project but are necessary for the overall functioning of the organization. These costs support the overall operation, including administrative expenses, utilities, and facilities costs.

Indirect costs are typically allocated among multiple projects based on a predetermined method, which helps in accurately reflecting the true cost of each project. This allocation is crucial for budgeting and financial management, ensuring that all projects contribute fairly to the overhead expenses of the organization.

Direct costs, on the other hand, are expenses that can be directly attributed to a specific project, such as materials or labor specifically for that project. Variable costs fluctuate depending on production or project activity, while fixed costs remain constant regardless of the level of activity. However, indirect costs remain stable and are necessary for the overarching operational capacity of the organization that supports multiple projects.