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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
Direct production businesses face several disadvantages, including high initial capital investment and operational costs, which can strain cash flow. They also encounter challenges in scaling production efficiently, as fluctuations in demand can lead to overproduction or underutilization of resources. Additionally, managing supply chain logistics and ensuring consistent quality can be complex and time-consuming, potentially impacting customer satisfaction. Lastly, such businesses may have limited market reach without effective marketing strategies.
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increased sales
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
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.
That horses could ruin it.