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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.
What are Both traced direct costs and allocated indirect costs?
cost assignments
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 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.
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
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.
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.
Direct costing as a technique of costing?
direct costing is a technique in which costs are classified as direct cost or indirect cost.
