What are direct costs?
Direct costs are expenses directly linked to producing goods or delivering services.
Why are direct costs important?
They help calculate COGS and assess profitability.
What are examples of direct costs?
Examples include raw materials, production labour, and manufacturing supplies.
How do direct costs differ from indirect costs?
Direct costs relate to specific products, while indirect costs support overall operations.
How are direct costs controlled?
Businesses manage them through supplier pricing, efficiency, and production planning.