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Which of the following are most likely to be direct costs of a steel manufacturer? Select THREE that apply.
Correct Answer: B,E,F
Direct costs are those costs of a product/service directly attributable/traceable to its production. Examples of direct costsincluding the following: Materials and services bought-in: In steel manufacturer, raw materials are iron ores, scrap metal, coals, etc Labour or wages: money paid to staff for the work involved in producing the product. Other expenses: other charges incurred that can be specifically attributed to a particular product, batch or service