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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.
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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.
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?
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
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.
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?
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.
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.
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.
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.
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.
Are indirect or direct costs easier to allocate?
If you're referring to income taxes, direct costs are easier to allocate.
