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According to the f9 notes
The definition For direct cost is
Direct costs are those costs directly related to the investment
e.g ( the new machine will incur running costs of $10000 per annum )
But according to management accounting is the above definition for direct costs correct ?
But Paper FM (not F9) is not management accounting – it is financial management which is not the same. Direct costs in management accounting are concerned with the direct costs of production. Direct costs in financial management are the costs directly resulting from a new investment.