The costs of providing a workspace for project workers, office furniture, electricity, and a cafeteria are indirect costs.
Cost, generally speaking, is the monetary value of goods and services purchased by producers and consumers. In a basic economic sense, the cost is a measure of the alternative choices he gives up in choosing one good or activity over another.
There are two basic types of costs that a business incurs: fixed costs and variable costs. Fixed costs do not change with performance, while variable costs do. Fixed costs are sometimes called overhead costs. It occurs whether the firm produces 100 products or 1,000 products.
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