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What is a direct benefit of the use of assembly line in production in economics?
Wasted motion is eliminated
what are factor that affecting the classification of a cost as direct or indirect?
The classification of a cost as direct or indirect depends on a variety of factors. Traceability: The most important factor in determining whether a cost is considered direct or indirect is the ability to trace it to the production process. Direct costs are those which can be directly traced to the production of goods or services, while indirect costs are those which cannot be traced in this way. Timing: The timing of the cost can also be a factor in determining whether it is classified as direct or indirect. Costs which are incurred before production begins are generally classified as indirect, while those incurred during the production process are typically direct. Relationship to Production Process: The relationship of the cost to the production process can also be a factor in determining whether it is considered direct or indirect. Direct costs are those which are related to the materials or labor used in the production process, while indirect costs are those which are necessary but not directly related to the production process. Controllability: Another factor in the classification of a cost as direct or indirect is the degree of control that the company has over the cost. Direct costs are those which are controllable by the company, while indirect costs are those which are uncontrollable and fixed. Flexibility: The flexibility of the cost can also be a factor in determining whether it is classified as direct or indirect. Direct costs are those which can be adjusted in response to changes in production, while indirect costs are those which remain fixed regardless of changes in production.
Different between direct demand and indirect demand?
Direct demand is the demand that the primary agent has for something. The primary agent desires the good or service for themselves. Indirect demand is the demand that arises for something by a secondary agent due to an interaction that occurs corresponding to the primary agent. For example: If a federal mandate occurs for ethanol to be blended at a level for the entire transportation fuel supply, the increase in corn demanded for producing ethanol is an indirect demand. The mandate may not be for corn use, but there is indirect demand for corn. However, consider that the ethanol production facilities that utilize corn for the production of ethanol have a direct demand for corn. The indirect demand for corn arises from the original demand for ethanol. The designation of direct or indirect is a matter of perspective for the question being asked.
Can Raw materials be direct or indirect?
raw material are indirect material
Economics is about the allocation of resources for the production and distribution of goods?
Economics is about the allocation of resources for the production and distribution of goods and ___________.
What are production aspect?
All of the following are aspects of mass production except who? organized labor. What is the difference between production direct production and indirect ...
How do managers decide whether a cost is direct or indirect?
It is not matter of decision by management, direct cost is that cost which is directly related with the production and separately identifiable with production volume while indirect cost is that cost which is not directly related with production volume and not separately identifiable.
How do you charge indirect wages in manufacturing account?
that is the order of manufacturing account Direct materials + Direct wages + Direct expenses (like loyalty fees) = prime cost Production overheads = indirect wages, depreciation Non Production overheads = like Work in progress
What different between Direct materials and Indirect materials?
Direct material is that material which directly involve in production of units like "wood" for furniture. Indirect material is that material which is not directly identifiable or allocatabl to product like "kneedles" in production of furniture
What is a direct benefit of the use of assembly line in production in economics?
Wasted motion is eliminated
What is direct expenses and indirect expenses?
what is direct and indirect expense
Is factory supplies a direct cost?
Factory supplies are those items which used in production but not directly related to production of products that's why not part of direct cost rather indirect cost.
what are factor that affecting the classification of a cost as direct or indirect?
The classification of a cost as direct or indirect depends on a variety of factors. Traceability: The most important factor in determining whether a cost is considered direct or indirect is the ability to trace it to the production process. Direct costs are those which can be directly traced to the production of goods or services, while indirect costs are those which cannot be traced in this way. Timing: The timing of the cost can also be a factor in determining whether it is classified as direct or indirect. Costs which are incurred before production begins are generally classified as indirect, while those incurred during the production process are typically direct. Relationship to Production Process: The relationship of the cost to the production process can also be a factor in determining whether it is considered direct or indirect. Direct costs are those which are related to the materials or labor used in the production process, while indirect costs are those which are necessary but not directly related to the production process. Controllability: Another factor in the classification of a cost as direct or indirect is the degree of control that the company has over the cost. Direct costs are those which are controllable by the company, while indirect costs are those which are uncontrollable and fixed. Flexibility: The flexibility of the cost can also be a factor in determining whether it is classified as direct or indirect. Direct costs are those which can be adjusted in response to changes in production, while indirect costs are those which remain fixed regardless of changes in production.
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.
What is included in direct overheads and what is included in indirect overheads?
The items which are included in direct overheads are the ones which are directly related to production process like salaries of machine operators and buying raw materials. The ones that are included in indirect overheads do not relate to production like giving to charity among others.
When do you say direct and indirect?
Direct refers to something that occurs without intermediaries or interruptions, while indirect means it occurs through intermediaries or has intervening factors. For example, a direct flight goes from one point to another without stopping, whereas an indirect flight may involve layovers or connecting flights.
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.
