Product or Service Cost Is a Very Objective Number That

question 36

True/False

Product or service cost is a very objective number that anyone could agree on.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of a good or service.

Direct Labor

Refers to the wages and other costs for labor directly involved in the production of goods or services.

Indirect Cost

Expenses not directly traceable to a specific product or process, such as utilities for a manufacturing plant.

Direct Cost

Direct costs incurred in the manufacture of certain goods or services, like labor and raw materials.