_______ are those which can easily be identified by a producing unit and are directly related to a unit of operation like a product, a process or a department of the firm.

Indirect cost

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Direct cost

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Sunk cost

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Incremental cost

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Solution

The correct option is B Direct cost
Direct costs are directly related to the production process and can uniquely be linked to a specific process, product or department of the firm. These usually consists of variable costs such as wages, raw material costs etc.

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_______ are those which can easily be identified by a producing unit and are directly related to a unit of operation like a product, a process or a department of the firm.

The correct option is B Direct costDirect costs are directly related to the production process and can uniquely be linked to a specific process, product or department of the firm. These usually consists of variable costs such as wages, raw material costs etc.

The correct option is B Direct cost
Direct costs are directly related to the production process and can uniquely be linked to a specific process, product or department of the firm. These usually consists of variable costs such as wages, raw material costs etc.