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direct indirect cost

This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.

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December 8, 2021 at 6:56 am #643046
Amrit123
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are glue for books and resins for golf ball direct or indirect cost ??
December 8, 2021 at 8:07 am #643064
John Moffat
Keymaster
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If the amount used in each book or in each golf ball can be measured then they would be direct costs.
Why are you asking me this?
December 8, 2021 at 8:58 am #643083
Amrit123
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- Topics: 26
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i got tis question and it was asked:
either it is direct cost or indirect cost without mentioning the amount…
December 8, 2021 at 3:09 pm #643152
John Moffat
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Again, if it is possible to measure the amount (whatever the amount is) then it is a direct cost.
Most likely they will not be able to measure the amount in which case it will be an indirect production cost.
Did whoever gave you the question not provide you with an answer?
December 9, 2021 at 4:58 am #643324
Amrit123
Participant
- Topics: 26
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i found that
glue for book was mentioned indirect but
resins for golf was direct
December 9, 2021 at 5:27 am #643335
John Moffat
Keymaster
- Topics: 57
- Replies: 54655
The logic remains as I replied previously and as is explained in my free lectures.
If it is measurable on a unit basis then it is a direct cost, if not then it is an indirect cost.
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