Explain why managers consider direct costs

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Answer the questions below in essay format.

Your essay must include an introduction, body, and conclusion, and address all relevant parts of each question. Your response should a minimum of 300 words in length. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number.

APA Formatting

Cost Classifications

Answer each of the following within your essay.

Define direct costs and indirect costs.

Explain why managers consider direct costs to be more accurate than indirect costs.

Name three factors that affect a cost's classification as direct or indirect.

Define variable and fixed costs, and provide at least two examples of each.

Reference no: EM131786133

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