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प्रश्न
Write a short note on direct costs.
Explain the direct costs.
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उत्तर
- Direct costs are expenses that are directly associated with the production of an item or service.
- Material costs, labour costs, and other costs directly related to producing goods or services are included in the term “direct cost”.
- During the production of an article, materials are used, wages are paid and other costs like fuel, water and electricity are incurred that are directly related to the production of the product.
- Similar to rent payments, which are directly related to the production site, direct costs can also be fixed.
- These direct expenses are directly related to one of the company's products. Since it includes all costs incurred in a factory during the manufacturing of goods, direct cost is sometimes also referred to as factory cost.
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संबंधित प्रश्न
Overheads are often related to accounting concepts such as fixed cost and ______ cost.
Total variable cost per unit increases ______.
The cost remains same at all levels of output is called ______ cost.
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Which of the following best describes a fixed cost?
Fixed cost is a cost which remains same at ______.
Distinguish between Direct Labour cost and Indirect Labour cost.
The term “variable costs” refers to ______.
"Some costs are semi-variable in nature." Comment.
Write short notes on Variable Costs.
