0
Yes factory rent is direct cost because without factory there is no possibility for production of units of goods.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Examples of variable cost and fixed cost?
Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.
Is electricity a direct or indirect cost?
It depends on various situations, if electricity is utilizing in factory for producing units of product then it is direct cost as much time work continues in factory as much electricity requires, but if it is in office room which has not concern with factory environment then it is not direct cost
Is factory supplies a direct cost?
Factory supplies are those items which used in production but not directly related to production of products that's why not part of direct cost rather indirect cost.
Does prime cost plus conversion cost equal the cost of manufacturing?
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
What are examples of fixed and variable cost factory?
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
Factory rent direct manufacturing costs?
Yes factory rent is direct manufacturing cost because without factory no production can be done so only factory rent is part of direct manufacturing cost and no other rent is included in it.
Differntiate between prime cost and factory cost?
Prime cost is a subset of Factory cost. Prime cost consist of Direct material, Direct labour and Direct expenses. Factory cost = Prime cost + Production OH
Examples of variable cost and fixed cost?
Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.
Direct expenses list?
Direct Expenses are: The direct expenses means those cost incurred directly to the production which are: 1. Workers wages 2. Material Cost 3. Manufacturing Cost 4. Transport 5. Factory Rent 6. Electricity Power 7. Fuel and etc
Define prime cost?
Direct Material Direct Labor direct Factory Overhead
Is electricity a direct or indirect cost?
It depends on various situations, if electricity is utilizing in factory for producing units of product then it is direct cost as much time work continues in factory as much electricity requires, but if it is in office room which has not concern with factory environment then it is not direct cost
Is factory supplies a direct cost?
Factory supplies are those items which used in production but not directly related to production of products that's why not part of direct cost rather indirect cost.
Does prime cost plus conversion cost equal the cost of manufacturing?
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
Some examples of manufacturing overheads?
manufacturing overheads include all the expenses made in the factory for the production like depreciation, rent paid for the factory, tools used, supervisior's charge, electricity bill, amount paid for motive power etc. It excludes the prime cost ( direct matl, direct labour, direct expenses)...
What are examples of fixed and variable cost factory?
examples of fixed cost factory are salary, rent, electricity bills while variable cost are purchase of raw materials,
What is manufacturing overhead?
cost incurred for manufacturing of good and services. It is also called Factory overheads. Example Factory rent,Factory workers salary,other cost which is incurred in factory to manufacture a Product
The three costs in every product are what?
Three Costs included in every product is:1 - Direct Material Cost2 - Direct Labour Cost3 - Factory OverheadsAlso Can be categorized as follows:Prime Cost = Direct material + Direct LabourConversion Cost = Direct Labour + Factory overheads
