Question

A costing method that examines only the direct costs of operating the computers, omitting softer indirect costs, such as wasted time, is referred to as:

Answer 1

The correct answer is transaction costs.

Step-by-step explanation:

The transaction costs can be defined as the cost incurred in the process of buying or selling of a product. This costing method includes only the direct or explicit costs involved in the process. Explicit costs are the direct costs that are incurred in the process of exchange of goods or services.

Implicit costs or opportunity costs are not included in this method. These are indirect costs and do not represent the exchange of goods and services. These costs are the cost of giving up the alternative.