ECONOMICS

Detailed explanation-1: -Direct costs (also known as costs of goods sold-COGS) are the costs that can be completely attributed to the production of a specific product or service. These costs include the direct expenses for materials used to create the product, and potentially any labor costs that are exclusively used to create the product.

Detailed explanation-2: -Direct costs examples include direct labor and direct materials. Although direct costs are typically variable costs, they can also be fixed costs. Rent for a factory, for example, could be tied directly to a production facility.

Detailed explanation-3: -Solution(By Examveda Team) Direct expenses are also called chargeable expenses.

Detailed explanation-4: -Overhead costs are those that are not directly related to the production of goods or services, but are necessary for the operation of a business. Examples of overhead costs include rent, utilities, insurance, legal fees, office supplies, advertising, payroll, and accounting fees.