direct cost, indirect cost

cruiser2006pt · #1 May 6, 2008, 04:45 PM

what is the difference between a direct cost and an indirect cost? Give an example of each

delite · May 8, 2008, 08:04 PM

direct cost> you manufacture and sell finished handbags. cost of materials to make the bag is a direct cost other direct costs are labor, and shipping.

indirect costs> accounting, legal and admisntration incur costs for the manufacturer of the handbags as well other area of production not related to handbags. Costs associated for the handbag operation are allocated. These allocated costs are indirect.



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