While the title implies financial matters, the approach to implementation includes broad and significant management implications. Full costing also supports full disclosure and reporting on programs and an improved matching of costs with related program performance. A variety of approaches are available for achieving full costing. The planned approach in NASA was developed by a team of NASA accountants and resource managers, as well as, program managers supported by academic and public accounting experts, including consultation with industry and other agencies. NASA's approach to full costing includes categorizing all costs as direct or indirect costs and subsequently refining the indirect cost group into two basic categories.
Indirect costs are all other costs.
Indirect costs are all costs that are not direct costs. NASA's approach to full costing identifies two basic indirect cost categories, traceable and non-traceable. These costs can be expected to be controlled in a broad sense by program managers. These costs will be allocated to programs in a consistent, logical manner. Indirect pools will be set up by NASA units to meet management needs.