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direct cost can be linked directly to a cost unit
say
A table requires 4 kg wood to make and cost of 1 kg wood is $5
So the material cost for 1 table will be (4×5)=$20but if the inventory store consist of 2 kg wood at a rate of $5
and 2 kg wood at a rate of $6in that case the material cost will be like (2×5)+(2×6)=10+12=$22
is it how the direct cost are related to the cost unit based on issue of inventory value.
sorry no need to reply sir.
i don’t know how the same question got posted again.
actually yesterday i posted the question.I don’t know why the post wasn’t showing.so i mistakenly posted it again.And now that one is showing.Sorry again sir.i already have got answer from u.
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