Question

What costs does Shun Electronics consider to be direct costs?

Answer 1

Shun Electronics direct costs - their set up establishment cost, associated technicians cost - are direct costs.

Step-by-step explanation:

Direct Costs are the costs associated with production/manufacturing, not selling & distribution.

Generally, factory costs - factory power, factory wages etc are considered to be direct costs.

In case of Shun Electronics, their set up establishment cost, associated technicians cost - are direct costs.