examples of dierect material,indirect,labour,and expenses cost
Chat with our AI personalities
Some direct expenses include direct labor and materials. Companies try to reduce the cost of direct expenses because they impact the cost of the product.
what are some of the causes of material quntity variance of favourable amount
Raw material is direct cost as without raw material no product can be produce and this value is also separately identifiable.
Some causes of direct material quantity variance are poor quality materials, untrained workers, and lack of supervision. Production managers should look at and determine the causes.
Single absorption rate is overall rate to allocate overheads to units of product based on some other base like machine hours or direct labor hours etc.