Question

which of the following is Direct cost
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Answer 1

Answer:

Explanation:

Direct cost

A price that may be directly connected to the production of particular goods or services is known as a direct cost. A service, a product, or a department might be the cost object and be the source of a direct cost. The two main categories of expenses or costs that businesses can incur are direct and indirect charges. Direct costs are frequently variable expenses, which means they change in response to production levels like inventory. However, some expenditures, including indirect costs, are more challenging to relate to a particular product. Depreciation and office costs are two instances of indirect costs.

Here are a few illustrations of direct costs:

• physical work.
• direct resources
• industrial supplies.
• the production team's pay.
• either fuel or power usage.

Why are direct costs important.

You can use direct expenses to inform crucial price decisions. Knowing the costs that directly contribute to a product allows you to calculate the minimal price at which you must sell it in order to cover those costs.

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