Advertisements
Advertisements
Questions
Distinguish between direct costs and indirect costs.
Give difference between Direct Cost and Indirect Cost.
Write differences between:
Direct Cost and Indirect Cost
Advertisements
Solution
| Basis of Comparison | Direct Cost | Indirect Cost |
| Meaning: | The costs which are directly attributable to a particular cost unit or cost centre. | The costs which are not directly attributable to a particular cost unit or cost centre. |
| Benefits: | Specific projects | Multiple projects |
| Aggregate: | When all the direct costs are taken together they are known as prime costs. | Total of all the indirect costs is called as overheads or on cost. |
| Traceable: | Yes | No |
| Classification: | Direct material, direct labour, direct expenses. | Indirect material, indirect labour indirect expenses. |
APPEARS IN
RELATED QUESTIONS
Write a short note on direct costs.
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.
Variable cost is a cost that ______.
Which cost decreases with increase in the volume of output?
Which of the following cost is time based?
Which definition best describes indirect costs?
Wages paid to a labour who was engaged in the production activities can be termed as ______.
What is opportunity cost?
Explain the following:
Sunk cost
Distinguish between controllable and uncontrollable costs.
The term "variable costs" refers to ______.
Fixed cost is a cost which ______.
Amount spent to purchase a machinery is the example of ______ cost.
A cost that is easily traceable to a cost object is known as ______.
"Some costs are semi-variable in nature." Comment.
What do you mean by Semi-Fixed cost?
Classify cost according to its nature.
Explain with an example, the meaning of fixed costs.
