that is the order of manufacturing account Direct materials + Direct wages + Direct expenses (like loyalty fees) = prime cost Production overheads = indirect wages, depreciation Non Production overheads = like Work in progress
Facilities Expenses - Rent, Utilities, Maintenance, InsuranceEquipment Expenses - Maintenance and Repair, DepreciationSelling Expenses such as AdvertisingOperating Expenses such as Telephone, Office Expense and Indirect LaborCosts that add no value to product such as Shipping, Warehousing, and Quality Control
give the full chart of the direct and indirect expenses . detail about this
When there is more direct expenses then revenue earned by company then trading account will show gross loss.
what is direct and indirect expense
that is the order of manufacturing account Direct materials + Direct wages + Direct expenses (like loyalty fees) = prime cost Production overheads = indirect wages, depreciation Non Production overheads = like Work in progress
Direct expenses
direct expenses
Direct Expenses are: The direct expenses means those cost incurred directly to the production which are: 1. Workers wages 2. Material Cost 3. Manufacturing Cost 4. Transport 5. Factory Rent 6. Electricity Power 7. Fuel and etc
manufacturing overheads include all the expenses made in the factory for the production like depreciation, rent paid for the factory, tools used, supervisior's charge, electricity bill, amount paid for motive power etc. It excludes the prime cost ( direct matl, direct labour, direct expenses)...
Facilities Expenses - Rent, Utilities, Maintenance, InsuranceEquipment Expenses - Maintenance and Repair, DepreciationSelling Expenses such as AdvertisingOperating Expenses such as Telephone, Office Expense and Indirect LaborCosts that add no value to product such as Shipping, Warehousing, and Quality Control
give the full chart of the direct and indirect expenses . detail about this
When there is more direct expenses then revenue earned by company then trading account will show gross loss.
yes , work expenses are direct
what is direct and indirect expense
Marginal costing is a technique of costing where the variable expenses are charged to a product. It ignores the fixed expenses incurred by the business in fixing the price of a product on the assumption that the fixed expenses are not incurred in producing an additional unit.They are treated as period costs& charged directly to P& L A/C.Marginal cost is the cost of producing an additional unit of product.It takes the direct expenses & the variable portion of the overhead expenditure. But Direct costing takes into account only the direct expenses like direct mterials, direct labour & direct expenditure for finding out the cost of a product.
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account