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प्रश्न
Classify cost according to its nature.
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उत्तर
- Direct Cost: Direct costs are those costs that can be easily, directly, and wholly related to a particular cost unit or cost centre. These consist of direct material costs, direct labour costs, and direct expenses. Materials used in the production of a specific unit, wages paid to workers directly engaged in manufacturing, and excise duty are examples of direct costs.
- Indirect Cost: Indirect costs are those that cannot be identified easily, directly, or wholly with a particular cost unit or cost centre. These comprise indirect materials, indirect labour, and indirect expenses. Fuel, the wages of storekeepers, and rent are examples of indirect costs. Indirect costs are also known as overheads or common costs.
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संबंधित प्रश्न
Write a short note on direct costs.
Distinguish between Fixed cost and Variable cost.
A firm has to pay a fixed rent of ₹ 500 for the postpaid mobile bill and further pay extra charges for the calls made in a month. Identify the type of cost mentioned here.
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.
Fixed cost is a cost which remains same at ______.
Explain the following:
Sunk cost
Distinguish between shut down cost and sunk cost.
Distinguish between Direct Labour cost and Indirect Labour cost.
Give an example of opportunity cost.
Give an example of Semi-Fixed cost.
