Relation to Cost objects : direct and indirect costs

Question 1

Direct cost def

Answer 1

Able to traced to a product or service with high degree of accuracy.

Question 2

2 most common direct costs

Answer 2

direct materials and direct labour.

Question 3

Indirect costs def

Answer 3

Are not so easily traced to a product or service. These are items that are too insignificant to make it worth tracing the cost to finished products.