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Direct cost are directly linked to the product : materials (cost of raw materials + transfert+associated taxes, ingredients+transport+associated taxes, packaging+transport+associated taxes) and labour (summation of number of hours of work really needed to make a task in the process) + direct expenses (goods purchased for a particular product).
Indirect cost for production are splitted into variable and fix.
variable production overhead cost are a calculation of a cost per unit you need to product (energy, goods) : energy/unit in $, amortization/unit, ...
fix production overhead is tax, rent of the plant, number of hour non used for production, management salaries (for the plant), ...
What else can I help you with?
What is the difference of indirect materials and direct materials?
One is indirect and one is direct!
What should be the ratio between direct and indirect manpower in different industries and sectors?
The ideal ratio of direct to indirect manpower varies significantly across industries. In manufacturing, a common ratio might be 70:30, with more emphasis on direct labor due to production needs. Conversely, in sectors like IT or consulting, the ratio could be closer to 50:50, as indirect roles such as management and support are crucial for project success. Ultimately, the optimal balance depends on the specific operational demands and business model of each sector.
How do you differentiate direct and indirect manpower in gas plant?
Direct manpower in a gas plant refers to employees who are directly involved in the core operations, such as plant operators, technicians, and engineers responsible for production and maintenance. Indirect manpower includes support roles that facilitate operations, such as administrative staff, safety officers, and procurement personnel. The key differentiation lies in the nature of their contributions to the plant's primary functions, with direct manpower having a hands-on role in the production process, while indirect manpower provides essential support services.
What is considered as a direct labor?
Any process that changes an aspect of the manufactured component. Examples: forming, cutting, shaping, washing, packaging, joining, welding, plating, curing, drying, etc. By inverse any process that does not change an aspect of the component is waste or indirect. Examples: inspection, transportation, weighing, testing, administration, management etc.
How do you arrive at Machine Hour rate and what can be the assumptions while calculating MHR?
There are many pparameters taken into accont for getting machine hr rate like: Direct labour cost indirect labour cost machine cst(intial) depreciation tool, lubrication, coolant, ...etc and most importantly total m/c hr available
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 ...
Differentiate between direct marketing and indirect marketing?
The difference between direct marketing and indirect marketing.
Difference between direct and indirect address instruction?
the different between direct and indirect adress instruction
What is the difference between indirect and direct quote life insurance?
The difference between indirect and direct quote life insurance is that the insurance level will differ. Direct is when someone dies, indirect involves other factors.
What is the difference between direct and indirect supervisor?
The difference between direct and indirect supervisor is the presence of the supervisor. Direct supervision means a supervisor is psychically present. Indirect supervision means doing work without the physical presence of the supervisor.
What is the difference between direct and indirect correlation in statistics?
GJVG
What is the difference between direct tax and non-direct tax?
difference b/w direct tax and indirect tax
What is the difference between a direct and indirect hernia?
if hernia tissu pass thrw ing.ring that is indirect ing.hernia.if it is pass thrw abdominal wall that is direct ing.herniaif hernia tissu pass thrw ing.ring that is indirect ing.hernia.if it is pass thrw abdominal wall that is direct ing.herniathe difference between direct hernia and indirect hernia is the direct hernia only affected the superficial inguinal ring and the indirect is affected the deep inguinal ringthe difference between direct hernia and indirect hernia is the direct hernia only affected the superficial inguinal ring and the indirect is affected the deep inguinal ring
What is the difference between direct expense and indirect expense in financial account?
give the full chart of the direct and indirect expenses . detail about this
The difference between direct taxs and indirect taxs and give examples of each?
The difference between direct taxes and indirect taxes with examples is that direct taxes come directly from a person's income or personal property taxes. Indirect taxes comes from sales and excise taxes.
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.
Difference between indirect and direct blood pressure?
one is direct the other one isn't
