1.
Concept Introduction:
Direct Cost: The cost which is directly related to the production of goods or providing the services is known as direct cost. Direct cost is directly apportioned with the products or services.
Indirect Cost: The cost which is not related to the production of goods or providing services directly is known as indirect cost. Indirect cost is not apportioned with the products or services
To Calculate:Average cost of product at every level.
2.
Concept Introduction:
Direct Cost: The cost which is directly related to the production of goods or providing the services is known as direct cost. Direct cost is directly apportioned with the products or services.
Indirect Cost: The cost which is not related to the production of goods or providing services directly is known as indirect cost. Indirect cost is not apportioned with the products or services
To Explain: Average cost per cup increases or decreases.
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