ECONOMICS

Detailed explanation-1: -A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct costs examples include direct labor and direct materials.

Detailed explanation-2: -(i) Production will increase due to recruitment of 60% more workers in the factory. (ii) Overall efficiency will decline by 10% on account of recruitment of new workers (iii) There will be an increase of 20% in Fixed overhead and 60% in Variable overhead. (iv) The cost of direct material will be decreased by 6%.

Detailed explanation-3: -A direct cost includes raw materials, labor, and expense or distribution costs associated with producing a product. The cost can easily be traced to a product, department, or project.

Detailed explanation-4: -Process costing:This is the accumulation of labor, material and overhead costs across departments or entities, with the total production cost then being allocated to individual units. Process costing is used when large quantities of the same product are manufactured, usually in long production runs.