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If you're referring to income taxes, direct costs are easier to allocate.

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โˆ™ 2006-11-21 18:38:11
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Q: Are indirect or direct costs easier to allocate?
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Related questions

Why distinguish direct costs from indirect costs?

It is done so to keep control on costs as direct costs are controllable while indirect costs are not.

Why do managers consider direct costs to be more accurate then indirect costs?

Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?

Are all direct costs variable?

Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.

Is direct cost same to indirect cost?

No direct costs and indirect costs are not same and opposite of each other.

Can direct cost be indirect cost?

The Answer is NO. Direct costs are direct cost which can be clearly/economicaly identified with the cost object, indirect costs cannot be traced to a specific cost object, based on the definition direct cos cant be an indirect cost (Misdhaaque Ahmed)

What are unallocated costs?

Cost that managment can not allocate to direct production or activity.

Flour for baking bread are direct or indirect cost?

They are direct costs.

What are the stages of accounting for costs?

direct costs,indirect costs,sunk costs, Activity based costing.

What are Both traced direct costs and allocated indirect costs?

cost assignments

Direct costs and indirect costs?

Direct costs- can be conveniently and economically traced to a cost object Indirect costs- cannot be conveniently or economically traced to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner

Direct cost of sales?

Direct cost of sales are those costs that exists as a result of selling the product. Indirect costs are costs that are there whether the product sells or not.

What are the differences between direct cost and indirect cost in management accounting?

Direct costs are the ones that can be traced back to specific objects or items. Indirect costs cannot be traced accurately to anything specific.

What are the differences between direct costs and indirect costs give an example of each?

Direct costs are costs specifically tied to objects, like raw materials or equipment. Indirect costs affect the company as a whole, not attached to an 'object', and include things like advertisement, payroll, and depreciation of equipment.

Can cost function measure direct cost as well as indirect cost?

yes cost function measures the direct costs along with indirect cost.

What is the relationship between direct and indirect costs?

Direct costs: Those costs that are linkedto a specific cost objective like product/service. Indirect costs: Those costs that CANNOT be directly linked to a particular cost objective and incurred for multiple cost objectives. Can also be called Common Cost.

Why companies want to distinguish between direct and indirect costs?

Companies must separate direct and indirect costs in order to best price their products. If they didn't then products would cost too much for customers.

Direct costing as a technique of costing?

direct costing is a technique in which costs are classified as direct cost or indirect cost.

What costs other than direct materials costs and direct labor costs incurred in the manufacturing process are classified as?

Indirect costs(salaries, materials not directly involved in manufacturing), period costs(selling and admin costs)

Is the hamburger meat on a hamburger considered a direct or indirect costs?

If you are selling hamburgers, the meat is a direct cost. If the meat was used at a company picnic, it is an indirect cost.

What are the direct and indirect costs of unsafe work habits?

i dint know

Prime cost and conversion cost?

Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs

Explain the difference between direct cost and indirect costs?

Direct cost are those costs which varies directly with variation in volume of products units like direct labor or direct material while indirect cost has not direct connection with volume of units of products like depreciation building rent supervisors salary etc.

What two types of costs are assigned to a cost object?

Costs assigned to a cost object are either direct or indirect.

Will a direct cost be allocated to the cost object?

i think only indirect costs

Does prime cost include indirect cost?

prime costs only includes direct cost like direct material and direct labor.