Document background
The Indirect Cost Agreement is a crucial document used to formalize the arrangement between parties for the allocation and management of indirect costs in business relationships. This agreement becomes necessary when entities share resources, facilities, or services that generate indirect costs requiring systematic allocation. It is particularly relevant in group structures, shared service arrangements, or complex business partnerships where overhead costs need to be distributed fairly and transparently. The agreement, governed by Swiss law, provides detailed methodologies for cost calculation, allocation bases, and documentation requirements, ensuring compliance with Swiss accounting standards and regulatory requirements. It includes comprehensive provisions for regular reporting, audit rights, and dispute resolution mechanisms, making it essential for establishing clear financial governance in business relationships involving shared costs.
