Direct and indirect costs

What are direct costs?

• it is taking place over a small period of time.

• is assets minus liabilities.

• is an expense that rises and falls with the volume of production.

• is the pattern of purchasing materials and using them to earn a profit.

What are variable costs?

• is an expense that rises and falls with the volume of productio

• is a bribe.

• direct materials are the materials that are used to make products

• A direct cost is an expense that rises and falls with the volume of production.

What are indirect costs?

• direct labor is the wages of employees who make a company's products.

• to finance something is to borrow money in order to purchase it.

• are costs such as rents and insurance premiums that stay the same regardless of the volume of production.

• is an expense that stays the same regardless of the volume of production.

What are fixed costs?

• are categories of production costs into which indirect costs are allocated.

• is a method for allocating indirect costs as parts of production costs.

• is an expense that stays the same regardless of the volume of production

What are direct materials?

• are the materials that are used to make products.

• is a group of employees within an organization that monitor the organization's operations, records, etc.

• are costs such as utilities that rise and fall with the volume of production.

• is an expense that rises and falls with the volume of production.

What is a Direct labor?

• is the act of one company absorbing another.

• is the act of ending a lease prior to the end of the lease term.

• is the wages of employees who make a company's products.

What is a variable overhead?

• are costs such as utilities that rise and fall with the volume of production.

• is the act of intentionally recording incorrect information.

• is the act of ending a lease prior to the end of the lease term.

What are fixed overheads?

• is an expense that stays the same regardless of the volume of production.

• are costs such as rents and insurance premiums that stay the same regardless of the volume of production.

• is an expense that rises and falls with the volume of production.

What is activity- based costing (ABC)?

• is a method for allocating indirect costs as parts of production costs.

• are costs such as utilities that rise and fall with the volume of production.

• are categories of production costs into which indirect costs are allocated

What are cost drivers?

• are costs such as utilities that rise and fall with the volume of production.

• are the materials that are used to make products.

• are categories of production costs into which indirect costs are allocated.