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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.
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.
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.
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What are the differences between direct cost and indirect cost in management accounting.?
what are the differences between direct cost and indirect cost in financial accounting
What are the differences between direct cost and indirect cost in management accounting?
Direct costs are the ones that can be traced back to specific objects or items. Indirect costs cannot be traced accurately to anything specific.
Difference between direct cost and indirect cost?
direct cost has direct relation with product manufacturing while indirect cost not and not identifiable with cost as well.
What is the definition of labor ratios?
cost relationship between direct and indirect.
Can direct cost be indirect cost?
The Answer is NO. Direct costs are direct cost which can be clearly/economicaly identified with the cost object, indirect costs cannot be traced to a specific cost object, based on the definition direct cos cant be an indirect cost (Misdhaaque Ahmed)
Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Is advertising expense direct or indirect cost?
indirect
Can cost function measure direct cost as well as indirect cost?
yes cost function measures the direct costs along with indirect cost.
Is direct cost same to indirect cost?
No direct costs and indirect costs are not same and opposite of each other.
What is the difference between direct cost of sales and total cost of sales?
total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.
Define direct and indirect labor cost in garment industry?
Define direct and indirect labour?"
Explain the difference between direct cost and indirect costs?
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.
