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Direct Cost
Expenses that can be directly traced to a product, service, or department, such as raw materials or labor.
Cost Object
Any item for which cost is measured and assigned, including products, services, projects, departments, or activities.
Selling Expenses
Costs incurred directly and indirectly in selling a product, including advertising, sales staff salaries, and commissions.
Administrative Expenses
Costs related to the general operation of a business that are not directly tied to producing goods or services.
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