ENTREPRENEURSHIP

Detailed explanation-1: -Variable costs can also be indirect costs such as electricity for the production plant since it can’t be tied to one specific product.

Detailed explanation-2: -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.

Detailed explanation-3: -Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.