Question: Direct cost are the same as variable cost, for example, direct material and direct labour. and indirect costs are the same as fixed costs, for

Direct cost are the same as variable cost, for example, direct material and direct labour. and indirect costs are the same as fixed costs, for example rent and supervision is this statement correct? 

Explain your answer.

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Direct costs and variable costs are similar in nature and are both types of costs i... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!