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raw material are indirect material

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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.


Why is Direct investment used?

Direct investment is advantageous because labor and raw materials may be cheaper in some countries


How does one work out the cost of a product in detail?

One uses absorption costing taking into account direct and indirect materials labour and overhead.


what are factor that affecting the classification of a cost as direct or indirect?

The classification of a cost as direct or indirect depends on a variety of factors. Traceability: The most important factor in determining whether a cost is considered direct or indirect is the ability to trace it to the production process. Direct costs are those which can be directly traced to the production of goods or services, while indirect costs are those which cannot be traced in this way. Timing: The timing of the cost can also be a factor in determining whether it is classified as direct or indirect. Costs which are incurred before production begins are generally classified as indirect, while those incurred during the production process are typically direct. Relationship to Production Process: The relationship of the cost to the production process can also be a factor in determining whether it is considered direct or indirect. Direct costs are those which are related to the materials or labor used in the production process, while indirect costs are those which are necessary but not directly related to the production process. Controllability: Another factor in the classification of a cost as direct or indirect is the degree of control that the company has over the cost. Direct costs are those which are controllable by the company, while indirect costs are those which are uncontrollable and fixed. Flexibility: The flexibility of the cost can also be a factor in determining whether it is classified as direct or indirect. Direct costs are those which can be adjusted in response to changes in production, while indirect costs are those which remain fixed regardless of changes in production.


What are the differences between direct and indirect corrosion of metallic materials?

Direct corrosion of metallic materials occurs when the metal is in direct contact with a corrosive substance, leading to localized deterioration of the material. In contrast, indirect corrosion happens when the metal is exposed to a corrosive environment through a medium such as water or air, causing uniform degradation over a larger surface area. Direct corrosion is typically more rapid and localized, while indirect corrosion can be slower and spread out over a larger area. Both types of corrosion can weaken the metal and compromise its structural integrity over time.

Related Questions

What is difference between direct purchase and indirect purchase?

The difference between direct purchase and indirect purchase is in what is purchased. Relating to raw materials, direct purchase is materials that go directly on a product and indirect is materials used to produce the product. Direct purchase can refer to purchasing products directly from manufacturers and indirect is purchasing through a middle person.


What is the difference of indirect materials and direct materials?

One is indirect and one is direct!


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


Is raw material indirect or direct cost?

Raw material is direct cost as without raw material no product can be produce and this value is also separately identifiable.


Indirect materials definition?

INDIRECT MATERIAL Materials, purchases and supplies used in the operation of the business, not directly associated with production and are part of OPERATING EXPENSES. As opposed to DIRECT MATERIAL.DIRECT MATERIALS Raw materials and other purchases that become a part of the units produced and incur expenditures that are easily traced to the units of output and included in the COST OF GOODS SOLD. As opposed to INDIRECT MATERIALS, such as office supplies.


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.


What is included in direct overheads and what is included in indirect overheads?

The items which are included in direct overheads are the ones which are directly related to production process like salaries of machine operators and buying raw materials. The ones that are included in indirect overheads do not relate to production like giving to charity among others.


Titanium dioxide is direct band gap or indirect band gap material?

Yes it is. Most Sn (tin) materials as semiconductors are direct band gap materials. Silicon on the other hand is an indirect band gap material.


Should a plant be located near the market or near the source of raw materials?

Actually it would be better if it was located exactly in between the both of them to try and reduce the direct and indirect costs both.


What different between Direct materials and Indirect materials?

Direct material is that material which directly involve in production of units like "wood" for furniture. Indirect material is that material which is not directly identifiable or allocatabl to product like "kneedles" in production of furniture


What is direct expenses and indirect expenses?

what is direct and indirect expense


Direct cost vs indirect cost?

Direct cost is that cost which is directly attributable to units of product like raw material and labor while indirect cost is not directly attributable like factory maintenance cost.