Direct and indirect costs Flashcards
1
Q
what are direct costs?
A
A price that can be completely attributed to the production of specific goods or services.
2
Q
What are indirect costs?
A
costs that a business must pay that are not influenced by the amount of items products
3
Q
Example of direct costs:
A
- wages
- equipment
- stock
4
Q
Example of indirect costs:
A
- insurance
- rent
- marketing
- administration
