In direct distribution, the product reaches the customer from the farmer/manufacturer within intervention of middlemen in between. This helps to reduce the operational costs,thereby offering the produce at the lowest minimum cost.
Total cost/ full cost which include Prime Cost *Direct Labour cost *Direct Material Cost *Direct expenses Production Overhead *Variable Overhead *Fixed Overhead Selling and Distribution cost Administration Cost
japan
Let's say that you are in the business of selling widgets. All the costs related to manufactureing, storing and selling one widget (referred to as a unit) would be the direct unit costs. Your direct cost of sales (also referred to as direct cost of goods or direct COGS) are all the costs related to the creation of your widgets. Your direct cost of sales may or may not be your total cost of sales. Usually this includes the cost of materials and direct labor costs, but excludes distribution and sales (the cost of getting your widgets to a retailer and get them sold).
A cost center is part of an organization that does not produce direct profit and adds to the cost of running a company. It is an organizational department.
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.
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
market imperfections approach
“What is the lowest cost for one day dentures”
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
No. Distribution is a separate company function.
The "Wrap rate" should be included: a) Direct and Indirect cost / rate (overhead), b) Other procurement service cost, C) Cost of Money (CAS 414), and D) Profit / fee.
prime cost = direct labour cost + direct material cost + direct expenses