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16 October, 17:56

Oil to keep the factory machinery lubricated is an example of what types of costs?

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  1. 16 October, 19:46
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    Determination of type of costs:

    There are two main types of costs, which are Direct Costs and Indirect Costs. Direct costs are those costs which are directly traceable to the product, for example; direct material, direct labor etc. On the other had indirect costs are common costs incurred which are not directly traceable to the product, for example: Indirect material, indirect labor etc.

    Oil to keep the factory machinery lubricated is an example of indirect material which is an Indirect Cost.
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