It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
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)
cost assignments
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.
i dint know
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.
distinguish between direct& indirect environment
No direct costs and indirect costs are not same and opposite of each other.
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
I think that it helps them to evaluate business segments on the basis of only those costs directly traceable to each segment.
This is how you can distinguish/recognize the indirect object from the direct object.The indirect object always goes before the direct object. (direct object is bold / indirect subject is italics)I gave Jim the book.The indirect object can be changed into a phrase beginning with to.I gave the book to Jim
They are direct costs.
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)
cost assignments
direct costs,indirect costs,sunk costs, Activity based costing.
If you're referring to income taxes, direct costs are easier to allocate.
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