The managers are liable to accrue certain indirect costs like administrative costs. Even though on the face of it, they might seem like uncoordinated or a waste of funds and finances, in reality, this is not true. Indirect costs like administrative costs are incurred in order to make sure that the business keeps running smoothly and that the administration is able to tackle and resolve any issue that might take place while the business is going on (Johnson, 1991). This would make sure that once the production starts, it can keep on running smoothly in the future. This means that when any situation takes place, the administrative staff comes to the forefront and handles it. For example, if the production has to make sure that the material is procured without problems, the supply manager, who is part of the administration, will make sure that this does not take place. Through his effort, he will make sure that the raw material is procured without interference. His coordination techniques will make sure that the factory never runs out of the material on hand (Scapens, 1990). If it takes time to procure the material, the manager will make sure that he stores and warehouses the material that would be required in the future. These efforts make the cost worthwhile and make sure that the production of the plant never falters.