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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
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∙ 14y ago
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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.
Is direct cost same to indirect cost?
No direct costs and indirect costs are not same and opposite of each other.
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?
Flour for baking bread are direct or indirect cost?
They are direct costs.
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 Both traced direct costs and allocated indirect costs?
cost assignments
What are the stages of accounting for costs?
direct costs,indirect costs,sunk costs, Activity based costing.
Are indirect or direct costs easier to allocate?
If you're referring to income taxes, direct costs are easier to allocate.
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
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 direct and indirect costs of unsafe work habits?
i dint know
Direct costing as a technique of costing?
direct costing is a technique in which costs are classified as direct cost or indirect cost.
