relationships between types of costs
Direct & variable
Direct & fixed
In direct & variable
In direct & fixed
Variable costs could be :
Direct : cost object is no. of colored shirts
Ex, a textile company , the wage of the worker who operates the printing machine " which is used only for colored shirts "
In direct : cost object is no . of all shirts produced
Ex , wages of the workers who carry the materials from the store to the plant
Fixed costs could be :
Direct : cost object is no. of colored shirts produced
ex , annual lease cost for the printing machine
In direct : cost object is no. of shirts produced
Ex , the rent of the plant
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