The cost components of price determination can be divided into direct and indirect costs. _______ costs relate to the actual units of production. If the unit is not produced, ________ costs are not incurred.

Question

Quizplus · Accepted Answer

Direct costs relate to the actual units of production, which means that if the unit is not produced, direct costs are not incurred. On the other hand, indirect costs are not directly related to the production units and may still be incurred even if no units are produced.

The Cost Components of Price Determination Can Be Divided into Direct