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Utilities can be classified as both direct and indirect costs depending on the context. Direct costs are those that can be directly attributed to a specific product or service, such as electricity used in a manufacturing process. Indirect costs, on the other hand, are not directly traceable to a single product and include general utility expenses for facilities that support overall operations, like heating or lighting in an office. Therefore, utilities can fall into either category based on how they are applied in financial accounting.

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What are Both traced direct costs and allocated indirect costs?

cost assignments


Are all direct costs variable?

Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.


Are all costs variable?

Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.


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