Jamarcus injured his hand playing softball one weekend. The injury prevented him from being able to work. Luckily for Jamarcus,
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- Direct costs are a price that can be linked directly to the manufacturing of certain goods or services.
- The cost object can be connected directly to a service, product, or department.
- Direct expenses often vary from different production levels, such example, inventories, which implies that they vary.
- Direct costs vary in expenses directly related to variable manufacturing costs With a production unit With production unit, fixed costs do not fluctuate.
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