Cpt

you may assume so ..

but it is better to understand the real meaning..

-direct cost is the cost incurred on procuring , manufacturing the goods. ( directly related to manufacturing/ purchase). for eg, wages, freight inward.

-direct cost is assumed in trading a/c

-indirect cost involes the cost indirectly related to production, and the cost related to sales.

for eg, selling and distribution expenses

-indirect cost are considered in p&l a/c

wages are given to labour ,which is directly associated with the production, hence direct cost,

whereas salary is given to the staff (indirectly related to production and for understanding purpose u may assume that staff sitting in the office helps is boosting sales), hence indirect cost.