Are direct costs variable or fixed?

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Can direct costs be variable,fixed and semi variable? Can you give me some examples please? I can only think of variable direct costs.

1 Answer

score 0 · Answer 1 · 2012-12-02T16:44:09+00:00

Direct cost can be both fixed and variable. The same can happen with indirect costs. Direct costs simply refer to the fact that the whole cost is due to the production of a product and will be fully absorbed by this product.