What are the differences between direct cost and indirect cost?

Answer 1

Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or any performance-based pay that an employee receives, such as profit-sharing bonuses. Indirect Compensation is far more varied, including everything from legally required public protection programs such as Social Security to health insurance, retirement programs, paid leave, child care or housing.

Answer 2

An apple cost $1.00

the direct cost is .875c and the indirect cost is .125c tax.

direct cost = cost of the item by itself.

indirect cost = cost to purchase or attain an item.

If you want the apple, you have to purchase the apple with tax.

Direct cost is that cost which directly related to the production of units like direct material or direct labor while indirect cost which is not directly related to the production of units like salary of factory manager etc.

Answer 3

Direct cost are those costs which varies directly with variation in volume of products units like direct labor or direct material while indirect cost has not direct connection with volume of units of products like depreciation building rent supervisors salary etc.

Answer 4

Direct cost is that cost which directly related to the production of units like direct material or direct labor while indirect cost which is not directly related to the production of units like salary of factory manager etc.