Direct and indirect costs, Cost Accounting

Assignment Help:

Direct and Indirect costs

Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so traced.

-  Direct costs have of costs such can be directly attributed to an exact product, output or level of activity. Direct costs include direct raw materials and direct labour named as prime costs also in aggregate. 

"PRIME COST = Direct Material Cost + Direct Labour Cost"

-  Indirect costs are costs such will not be directly attributable to a exact product. They are regarded like overheads. Identification of overheads to exact products is done by cost apportionment and allocation. They involve supervisors' rent, salaries, electricity, and depreciation of building.


Related Discussions:- Direct and indirect costs

The actual price per pound of the direct material purchsed ?, A co has a st...

A co has a standard costing system. the following are avaiable for september: actual quantity of direct materials purchased and used: 20,000 pounds Standard price of direct mater

Close-end matching grants, RC School District has a large number of student...

RC School District has a large number of students in need of remedial instruction.  The superintendent of RC School System can allocated her budget between purchasing X units of re

Incremental costs as relevant costs, Incremental Costs as Relevant Costs ...

Incremental Costs as Relevant Costs An incremental cost is specifically incurred with the following a course of action and ignorable if such action is not implemented. It cont

Cost Accounting, Cost Accounting advantage and features

Cost Accounting advantage and features

Just in time, advantages and disadvantages of just in time

advantages and disadvantages of just in time

Fixed overheads variance, Fixed Overheads Variance This is defined lik...

Fixed Overheads Variance This is defined like the difference between the fixed overheads attributed and the standard cost of fixed overheads absorbed in the production achieve

How long does it acquire to implement fca?, It takes about two to three yea...

It takes about two to three years to fully execute FCA and get all employees comfortable with it. Even then, the process will still develop. In Greensboro, North Carolina, it took

Cvp for multiple products, CVP for Multiple Products What number of bus...

CVP for Multiple Products What number of businesses sells only one manufactured goods? The reality is that firms usually give us the diverse product line, and the individual pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd