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because that interest amount is not directly involved in producing goods.
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∙ 9y ago
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Is interest expense a Direct Cost?
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
What is other direct cost?
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
What is the sum of direct labor and direct materials called?
prime cost = direct labour cost + direct material cost + direct expenses
What is difference between Direct Cost and Direct Costing?
Direct cost is cost of product while direct costing is the process which study or accounts the direct cost allocation to products.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
Is interest expense a Direct Cost?
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
What is other direct cost?
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
What is carring cost?
Carrying cost is that expense or amount which required to incurred for stocking the inventory like insurance cost, storage cost etc.
What is the sum of direct labor and direct materials called?
prime cost = direct labour cost + direct material cost + direct expenses
What is difference between Direct Cost and Direct Costing?
Direct cost is cost of product while direct costing is the process which study or accounts the direct cost allocation to products.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
Is direct material a selling cost?
is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost, is direct cost a? Selling cost, manufacturing costs, direct, manufacturing cost indirect, general and administrative cost, fixed cost , variable cost,
What is direct cost and indirect cost?
A direct cost is a cost than can be attributed directly to a product; examples include materials used in production, electricity used by a machine making the product, worker hours spend operating the machine to make the product. An indirect cost is a cost than occurs but cannot be attributed directly to a product; examples include electricity used by lighting, the account staff wages, business rates. indirect costs, like direct costs can be both fixed and variable: business rates are fixed (for a year) but the cost of electricity used to light the factory floor is going to be variable depending upon how much the machines are used and staff being present - there can also be more than one product being made on the factory floor on different machines, but only one set of lights over the whole floor - one light could easily cover 2, 3 or more machines.
What is direct Cost per unit?
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.
Difference between direct cost and direct costing?
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.
Difference between direct cost and indirect cost?
direct cost has direct relation with product manufacturing while indirect cost not and not identifiable with cost as well.
Is direct material cost an overhead?
no direct cost is not an overhead
