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प्रश्न
Write a short note on direct costs.
Explain the direct costs.
स्पष्ट करा
टीपा लिहा
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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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Classification of Costs
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संबंधित प्रश्न
Indirect material scrap is adjusted along with ______.
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 definition best describes indirect costs?
Explain the following:
Sunk cost
Distinguish between direct costs and indirect costs.
Give an example of opportunity cost.
Fixed cost per unit decreases when ______.
Classify cost according to its nature.
Explain with an example, the meaning of variable costs.
Write short notes on Variable Costs.
