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

Considerations in variance investigation, Considerations in Variance Invest...

Considerations in Variance Investigation As already notice above, not all variances are investigated; this is only the material and meaningful as for cost control reasons vari

Time analysis - cost accumulation, Time Analysis - Cost Accumulation T...

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe

Example of high - low method of cost estimation, Example of High - Low Meth...

Example of High - Low Method of Cost Estimation Based on the performance, such you have been provided along with the given information regarding ABC Ltd for the year ended on

Reconciliation of profits, Reconciliation of Profits Reconciliation of...

Reconciliation of Profits Reconciliation of profits disclosed by Financial Accounts and Costing Accounts in an interlocking system, While interlocking cost accounting system

Objective type question, 9. When in the management process do managers seek...

9. When in the management process do managers seek an answer to the question "Did we meet our cost-reduction goals for non-value-adding activities?" a. Planning b. Performing c. Ev

Opportunity costs are relevant costs, Opportunity Costs Are Relevant Costs ...

Opportunity Costs Are Relevant Costs Opportunity cost introduces an additional concept that is not available like part of normal cost analysis in the accounting record system.

Direct material price variances, Direct Material Price Variances The t...

Direct Material Price Variances The two direct material price variances can be summarized given as: From our basic data first before the beginning of the discussion on

Calculate the opportunity costs, Suppose the Danny can prepare 50 pizzas or...

Suppose the Danny can prepare 50 pizzas or 100 sandwiches in an hour and Steve can produce 15 pizzas or 9 sandwiches. a) Draw each individual's PPF. b) Calculate the oppor

Modified accelerated cost recovery system, Assume new instruments for a fir...

Assume new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Finish the depreciation schedule shown below using the

Budgeted, Question: Yamba Home Products is just beginning its fourth quar...

Question: Yamba Home Products is just beginning its fourth quarter, in which peak sales occur. The company has requested a $12,000, 90-day loan from its bank to help meet cash re

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