Are utlities both direct and indirect costs?

Utilities can be classified as both direct and indirect costs depending on the context. Direct costs are those that can be directly attributed to a specific product or service, such as electricity used in a manufacturing process. Indirect costs, on the other hand, are not directly traceable to a single product and include general utility expenses for facilities that support overall operations, like heating or lighting in an office. Therefore, utilities can fall into either category based on how they are applied in financial accounting.