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What two costs elements are required to calculate an indirect cost rate?
Wiki User
∙ 11y ago
Indirect cost rate is equal to Indirect Cost Pool divided by Indirect Cost Allocation Base.
Wiki User
∙ 11y ago
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Why distinguish direct costs from indirect costs?
It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Why do managers consider direct costs to be more accurate then indirect costs?
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
What is an absorption costing?
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
Definition of full costing method?
a.k.a. Absorption Costing, is a method that includes direct manufacturing costs as well as indirect manufacturing costs such as machine depreciation and factory. (GAAP Required)
In budgeting what is on the list of direct and list of indirect expenses?
Indirect costs are costs that are not directly accountable to a cost object (such as a particular function or product). Indirect costs may be either fixed or variable. Indirect costs include taxes, administration, personnel and security costs, and are also known as overhead.Costs usually charged directlyProject staffConsultantsProject suppliesPublicationsTravelTrainingCosts usually allocated indirectlyUtilitiesRentAudit and legalAdministrative staffEquipment rental
Is office rent direct cost or indirect cost?
Office rent is indirect cost as normally all these kinds of offices are used for management purposes which is not directly required for manufacturing of goods that’s why all kind of management costs are indirect costs.
Why distinguish direct costs from indirect costs?
It is done so to keep control on costs as direct costs are controllable while indirect costs are not.
Why do managers consider direct costs to be more accurate then indirect costs?
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
What is an absorption costing?
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
Is direct cost same to indirect cost?
No direct costs and indirect costs are not same and opposite of each other.
Definition of full costing method?
a.k.a. Absorption Costing, is a method that includes direct manufacturing costs as well as indirect manufacturing costs such as machine depreciation and factory. (GAAP Required)
What are the stages of accounting for costs?
direct costs,indirect costs,sunk costs, Activity based costing.
In budgeting what is on the list of direct and list of indirect expenses?
Indirect costs are costs that are not directly accountable to a cost object (such as a particular function or product). Indirect costs may be either fixed or variable. Indirect costs include taxes, administration, personnel and security costs, and are also known as overhead.Costs usually charged directlyProject staffConsultantsProject suppliesPublicationsTravelTrainingCosts usually allocated indirectlyUtilitiesRentAudit and legalAdministrative staffEquipment rental
What are Both traced direct costs and allocated indirect costs?
cost assignments
Is indirect material fixed costs or variable costs?
Indirect material is normal fixed cost that is why it is allocated using some kind of ratio or formula.
What are the indirect costs of tooth decay?
Indirect costs of tooth decay include things like lost productivity at work and school. Absenteeism due to dental appointments or severe pain is an indirect cost.
Are all costs variable?
Direct Cost are those costs that can be directly assigned to a production process. Indirect cost were those costs that cannot be directly assigned to production process but have to allocate to production. Variable costs are those costs that vary directly with the production level. Only Direct cost could be variable . But not all direct cost are variable. Thus direct cost contains both Variable and Fixed elements while indirect costs contains only fixed element.
