2-46
Learning Objective 6
Understand the
differences between direct
and indirect costs.
. 2-47
Assigning Costs to Cost Objects
Direct costs
Indirect costs
• Costs that can be
easily and conveniently
traced to a unit of
product or other cost
object.
• Costs that cannot be
easily and conveniently
traced to a unit of
product or other cost
object.
• Examples: direct
material and direct labor
• Example: manufacturing
overhead
.
Understand the Differences Between Directand In Direct Costs
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