The correct answer is: B. each unit of output.
Direct costs are costs that can be easily traced to a specific product or service. They are incurred in the production of a good or service and can be easily identified with a particular unit of output. Examples of direct costs include direct materials, direct labor, and direct expenses.
Indirect costs are costs that cannot be easily traced to a specific product or service. They are incurred in the overall production process but cannot be easily identified with a particular unit of
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