Direct & Indirect Costs Flashcards
1
Q
Examples of Direct costs?
A
Raw materials
Labour (production)
2
Q
What are Indirect costs?
A
Often called Overheads and are relevant for the business to operate but which are not directly linked to a specific product.
3
Q
Examples of Indirect costs?
A
Advertising
Furniture
Cleaning materials
4
Q
What are Direct costs?
A
Costs that can be linked to a product.
