direct and indirect costs

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  • Direct/indirect costs.
    • Direct - The costs that can be linked to a product such as the raw materials and labour used to make it.
    • indirect - These are also called overheads, these are they costs that are required for a business to operate
      • But are not directly related to a specific product.
        • In some businesses, such as a sole trader, variable costs will be the same as direct costs;
          • and fixed costs are the same as indirect costs.


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