Oil to keep the factory machinery lubricated is an example of what types of costs?

Question

Jamari Nash

Business

9 August, 08:34

Oil to keep the factory machinery lubricated is an example of what types of costs?

+4

Answers (1)

Know the Answer?

Fatima Marks · Answer 1

Determination of type of costs:

There are two main types of costs, which are Direct Costs and Indirect Costs. Direct costs are those costs which are directly traceable to the product, for example; direct material, direct labor etc. On the other had indirect costs are common costs incurred which are not directly traceable to the product, for example: Indirect material, indirect labor etc.

Oil to keep the factory machinery lubricated is an example of indirect material which is an Indirect Cost.