Question

Direct cost is that which cannot be easily allocated to cost units.

Is that True or False..
plz give me answer for suitable reasons..

Answer 1

Answer:

A direct cost is a price that can be completely attributed to the production of specific goods or services. Some costs, such as depreciation or administrative expenses, are more difficult to assign to a specific product, and therefore, are considered to be indirect costs. A direct cost can be considered a variable cost if it is inconsistent and often fluctuates in amount.

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