Which of the following is an example of indirect costs?

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Indirect costs refer to expenses that are not directly tied to a specific project or service but still affect the overall operation of a business. In this case, negative media coverage and poor employee morale illustrate indirect costs because they impact the organization's reputation and workplace environment, potentially leading to decreased productivity and increased turnover, which can have long-lasting financial implications.

Negative media coverage can deter potential customers and partners, influencing sales and revenue without being a direct result of a specific expense or loss. Similarly, poor employee morale can lead to reduced efficiency, increased absenteeism, and additional costs associated with employee recruitment and training when turnover occurs. Both of these factors contribute to the indirect costs of doing business, as they are related to overall operational effectiveness rather than immediate financial losses or expenses.

Other options present more direct costs or costs that can be attributed to specific losses or damages, which is why they do not represent indirect costs in the same way.

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