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Direct cost is that cost which is directly identifiable with production volume while direct costing is the method or process through which direct cost is allocated to production.
Direct labor which do not vary with level of production is fixed direct labor while labor vary with change in production is variable direct labor.
direct labor is direct cost attributable to production of goods.
The production budget needs to be exploded into budgets for direct material, direct labor, and manufacturing overhead.
disadvantages of Production Structures
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demerit of batch production
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Direct cost is that cost which is directly identifiable with production volume while direct costing is the method or process through which direct cost is allocated to production.
Mass production is: - Inflexible - Limits the design of products
Advantage And Disadvantage Of Small Scale Production
increased sales
Direct labor which do not vary with level of production is fixed direct labor while labor vary with change in production is variable direct labor.
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disadvantages it eliminate other factors such as economic as well as production advancement