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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 807 |
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Cost that are directly attributed to the manufacturing of a product are direct cost. Direct cost are identified with a specific product, department or activity. For example the cost of material and labor to manufacture a widget is identified as a direct cost of that physical product. Examples of direct cost are direct materials, direct labor and direct expenses...
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Examples of direct cost are direct materials, direct labor and direct expenses. Direct cost that are grouped together are called prime cost. Indirect cost can not be identified with a specific product. Taxes, depreciation of plant and machinery and factory rent are common indirect cost. Indirect cost include all the remaining cost after production is complete...
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