In your organization, whether it provides a service, or sells a product. What items may we expect to see in terms of "expenses" (related to its "product" or service") in its Income Statement? In which section would these be shown? Anyone?

Explain the interrelationship between costs and budgets

Managerial accounting

In general terms, is there an established criteria in determining a company's product costs as either direct or indirect? Or are these classifications mainly dependent on the type of product/service? Your thoughts and additional examples, anyone?