Unformatted text preview: If these are options that Toll Brother’s Offers as part of the customizations then I would assume they make room for those in their direct costs especially since it is directly included in the products they have available to their customers. From what I understand from the definitions I have read, what make a cost indirect is not being able to specifically trace the cost to the product. These amenities are in fact part of the product and so I would think they would be considered direct. Source: http://fast.faa.gov/pricing/98-30C10.htm...
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- Spring '10
- Federal Aviation Administration, REYNALDO, indirect material costs, completely separate section