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Topic: Business
Number of pages / Number of words: 3 / 772
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An example of this is the addition of payroll (fixed cost) or raw materials (variable costs) for the automobiles mentioned above.

Indirect and Direct Costs:

Indirect costs are the expenses incurred during business transactions that are not easily associated with a certain project or activity. They are, however, needed for whatever the project is...


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They are, however, needed for whatever the project is. Examples are utilities and phone. An example of this would be the production of Applebee’s Hamburgers. The indirect cost would be the electricity used to cook the hamburger and the waitresses’ tips for that hamburger.

Direct costs are the expenses that are specific to the project or activity...


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