Question

Distinguish between Direct Costs and Indirect Costs.

Answer 1

Direct Costs	Indirect Costs
1. Direct Costs are those costs which an be easily, directly an wholly related to a particular cost unit or cost centre.	Indirect costs are those costs which cannot be identified easily, directly and wholly with a particular cost unit or cost centre.
2. These consist of direct material coast direct labour cost and direct expenses.	These comprise indirect materials, indirect labour and indirect expenses. Indirect costs are also known as over heads.