ECONOMICS

Detailed explanation-1: -The most commonly used direct costs budget categories include: salaries and wages, fringe benefits, equipment, travel, materials and supplies, participant support costs, publication costs, consultant services, computer services, subawards.

Detailed explanation-2: -Direct costs are the expenses a business incurs directly to make a product or service, or buy a wholesale product for resale. (All other costs are considered to be indirect costs.)

Detailed explanation-3: -Solution: Prime cost includes direct materials, direct wages and direct expenses.

Detailed explanation-4: -Indirect costs include supplies, utilities, office equipment rental, desktop computers and cell phones. Much like direct costs, indirect costs can be fixed or variable. Fixed indirect costs include expenses such as rent; variable indirect costs include fluctuating expenses such as electricity and gas.