Administrative indirect costs (administrative overheads) are costs that are incurred during management, planning and controlling of the entity´s operations. Together with selling and distribution overheads they form non-production indirect costs (non-production overheads).
Administrative overheads can include for example:
Administrative overheads are in most accounting systems (or even in all?) treated as period costs and booked immediately to profit & loss statement.
This is also the case under IAS 2 – Inventory.