Chapter 1, Problem 3QS

To determine

Direct Cost:

Direct cost represents cost which incurred in the production of goods and services. Direct cost as name suggests directly relates with the produced item.

Indirect Cost:

Indirect cost represents cost which is indirectly related to the production of goods and services. For example salary expense does not play any part in production related work.

To identify: Given costs as direct (D) or indirect (I) costs of D Company.