Question:
What is the difference between direct and indirect costs
Author: Hjalmer PedersenAnswer:
Direct costs are costs that are related to the cost object directly and can be measured directly in money terms. I.e., tires used to produce a car. Hence, the costs can be put directly on the cost object. Indirect costs cannot be traced directly to the cost object; hence these costs are allocated to the cost object.
0 / 5 Â (0 ratings)
1 answer(s) in total