
Concept explainers
Direct Costs:
Direct Costs are costs incurred in the production of a product that are easily traceable to the product. Direct material is the material used in the production of product that is easily traceable. For example wood used in making chairs.
Indirect Costs:
Indirect Costs are costs incurred in the production of a product that are not easily traceable to the product. Indirect costs include indirect material, indirect labor and
1. Direct materials:
To identify: Items to be included in direct material for a construction business.
2.
To determine: The direct, indirect and total costs for the project.
3. Construction bid:
To determine: The amount for the construction bid
4. Direct and Indirect Costs:
To indicate: The reason of inclusion of direct and indirect costs while calculating markup

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Chapter 19 Solutions
ACCOUNTING PRINCIPLES V1 6/17 >C<
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