Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
Both direct labor and direct material are part of direct expenses incurred by company to manufactured goods or providing services and both have direct relations with direct expenses it means as much as direct material and direct labor as much the direct expenses which is total of both of them.
Formula for prime cost = direct material + direct labor
examples of dierect material,indirect,labour,and expenses cost
Direct cost is that cost which is directly attributable to products like material and labor.
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
Direct material is that raw material which is required to produce the goods while direct labor is that cost without which no goods can be manufactured.
Both direct labor and direct material are part of direct expenses incurred by company to manufactured goods or providing services and both have direct relations with direct expenses it means as much as direct material and direct labor as much the direct expenses which is total of both of them.
Direct Material Direct Labor direct Factory Overhead
Formula for prime cost = direct material + direct labor
examples of dierect material,indirect,labour,and expenses cost
add the direct material +( direct labor* time)* nO of worker
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
Direct cost is that cost which is directly attributable to products like material and labor.
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
prime cost = direct labour cost + direct material cost + direct expenses
Prime cost is as follows:1 - Cement (Raw material)(direct material)2 - workers (direct labor)