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The president's salary is generally considered a direct cost rather than an indirect cost. This is because it can be directly attributed to the leadership and management of the organization. Indirect costs typically refer to expenses that cannot be directly linked to a specific project or function, such as utilities or administrative expenses. However, in some contexts, if the salary is part of overhead in a larger budget, it might be allocated as an indirect cost.
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Is a company president considered indirect labor?
No. A companies president salary is a period cost.
What are overheads?
overheads are three indirect elements of cost. The three elements being-i ndirect material, indirect labour and indirect expenses. these indirect elements of cost have no bearing whatsoev er with the level of activity or volume of production. Examples of these indirect elements are- in making shirts. buttons and thread will be indirect material, rent of the factory will be indirect expenses and salary of the storekeeper will be indirect labour these three would be collectively called overheads.
What two cost elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
What two costs elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Direct and indirect labor costs?
Direct labor cost is that labor which directly related with manufacturing of products like machine workers etc while indirect labor cost is that labor cost which directly not manufacturing product but required as well like line mangers or factory supervisors salary etc.
Is a company president considered indirect labor?
No. A companies president salary is a period cost.
Is salary considered a direct or indirect cost in business operations?
Salary is considered a direct cost in business operations because it can be directly attributed to the production of goods or services.
What is an indirect cost of a selection process?
Interviewer's salary (This answer is incorrect!) The correct answer is: Changes in the organization's public image
What are overheads?
overheads are three indirect elements of cost. The three elements being-i ndirect material, indirect labour and indirect expenses. these indirect elements of cost have no bearing whatsoev er with the level of activity or volume of production. Examples of these indirect elements are- in making shirts. buttons and thread will be indirect material, rent of the factory will be indirect expenses and salary of the storekeeper will be indirect labour these three would be collectively called overheads.
What two cost elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
What two costs elements are required to calculate an indirect cost rate?
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
What are the differences between direct cost and indirect cost?
Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or any performance-based pay that an employee receives, such as profit-sharing bonuses. Indirect Compensation is far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or housing.
Direct and indirect labor costs?
Direct labor cost is that labor which directly related with manufacturing of products like machine workers etc while indirect labor cost is that labor cost which directly not manufacturing product but required as well like line mangers or factory supervisors salary etc.
Is indirect labor a variable cost?
If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.
Is research development cost direct or indirect cost?
Research and development cost is indirect cost as this cost is not directly required to manufacturing the production units and that’s why always an indirect cost.
Is a manufacturing plant managers salary a direct labor cost?
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account
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.
