A type of indirect costs,called direct costs are costs which the organization commits itself to within an operating year,and which often are spent in advance or at the front end of a manufacturing/sales cycle.

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Direct costs are directly attributable to a specific product or service, such as raw materials or labor, and are not considered indirect costs. Indirect costs are not directly tied to production, like utilities or rent.

A Type of Indirect Costs,called Direct Costs Are Costs Which