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Dear John Sir,
i was getting a little intuitive and just thinking about a cost card where we have variable overheads and fixed overheads.
I just thought upon possibility of case of a Fixed Direct expense. Is it possible in real life situation that we have a Fixed Direct expense OR it is absolutely impossible and all Direct expenses are necessarily Variable.
i understand that Direct expenses are expenses which can be directly linked to a cost unit and hence this query ..
Thanks
AmitDirect expenses can not be a fixed cost – they are always variable (because they are measurable for each unit, it follows that more units means more total cost).
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