Course Hero Logo

GSB 5031-5.docx - Direct costs are expenses that can be...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 out of 1 page.

Direct costs are expenses that can be identified with a particular product, forexample, costs on raw materials, packaging, fuel and direct labor. If acompany produces nothing, the direct costs will be zero. Indirect costs areproduction costs that remain exactly the same regardless of the level ofoutput. Examples of indirect costs include rent, insurance premiums, interestpayments and salaries of employees.Return On Assets (ROA) is a vital tool for managers and financial analystssince they use it to tell if the company is effectively using its resources tomake profit (Birken and Curry, 2021). While this is the case, the direct andindirect costs are important to determine the ROA and allocating overhead
End of preview. Want to read the entire page?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
DR. SHELLEY

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture