Objective of allocating indirect costs

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Reference no: EM1349532

1-What is direct cost? What criteria are used to determine whether a cost is a direct cost?

To calculate the total cost of the production department or to calculate each product's total cost, it is necessary to allocate some of the rent (and other indirect costs) to the department and to the product.

2-In manufacturing environment, which cost are direct and which are indirect in product costing?

3-What is the objective of allocating indirect manufacturing overhead cost of product?

Reference no: EM1349532

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