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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2246 |
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Total cost is the sum of prime cost and overhead. (Cost and Management Accounting 1, 1991, page 10)
An example of a sector that uses direct v indirect costs is the horse racing sector. Direct cost incurred in the upkeep of a racing horse is the special grooming and racing fees. Indirect costs would include: hay and straw, depreciation, rent, rates, wages of stable managers salary, wages of stable boy etc...
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Total cost is the sum of prime cost and overhead. (Cost and Management Accounting 1, 1991, page 10)
An example of a sector that uses direct v indirect costs is the horse racing sector. Direct cost incurred in the upkeep of a racing horse is the special grooming and racing fees. Indirect costs would include: hay and straw, depreciation, rent, rates, wages of stable managers salary, wages of stable boy etc...
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