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What are the differences between a direct cost and an indirect cost?

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What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be included in product cost? Why or why not?

Please provide 300 words and references.

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The differences between a direct and an indirect cost are determined.

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According to Anthony, Hawkins and Merchant (2003) direct costs are the items of costs of a cost object that are "specifically traced to, or caused by, that cost object" (p. 546). For example, the textile used for the manufacture of a piece of cloth is an example of a direct cost specifically a direct material cost. On the other hand, indirect costs are "elements of costs that are associated with, or caused, by two or more cost objects jointly but are not directly traced to ...

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