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Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
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∙ 9y ago
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Is Direct Cost an Expense?
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Is interest expense a fixed cost?
yes
Is advertising expense direct or indirect cost?
indirect
Is the direct expense part of prime cost?
yes it is part of the prime cost
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
Is Direct Cost an Expense?
Yes direct costs are expense when they are occurred and benefit of which are taken by company.
Is interest expense a fixed cost?
yes
Is advertising expense direct or indirect cost?
indirect
Why is the after-tax cost of debt rather than the before-tax cost used to calculate the weighted average cost of capital?
Because interest expense is deductible. Because interest expense is deductible.
Is the direct expense part of prime cost?
yes it is part of the prime cost
What are the components of prime cost?
Direct labor and direct materials are the two main components of prime cost. Another component of prime cost is direct expense.
Is freight in considered a cost of purchasing inventory?
yes.....direct expense..
Difference between operating expense and direct expense?
Operating expense is the cost of running your day-to-day business. Operating expenses include rent, utilities, supplies, and insurance. Direct expense is an expense that varies with changes in the cost object. Direct expenses include materials needed to manufacture a product, freight charges to transport product, and taxes related to the sale of goods.
What journal entry accrues interest expense?
DR - Interest Expense CR - Interest Payable
What is Cost Head in accounting?
Cost head is specific head to which costs are charged like advertisement expense or direct material etc.
What is prime expense?
Prime Cost(Expenses) = Direct Material + Direct Labour
Is interest expense a selling or general and administrative expense?
Interest expense is neither selling or administrative, and it's too significant to be called a general expense. Interest expense is usually called a finance expense and is usually listed separately from SG&A, on the Income Statement
