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MA – Direct cost

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

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July 14, 2022 at 11:54 am #660463
ToanLMK
Participant
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Hello sir, could you explain why the packing material is classified as Direct cost, I don’t understand that. Thanks in advance
July 14, 2022 at 4:18 pm #660498
John Moffat
Keymaster
- Topics: 57
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It rather depends on the information given in the question.
A direct cost is a cost that can be identified in each individual unit. So if (for example) each unit is packaged and the packing costs $2 for each unit, then the $2 is a direct cost.
July 19, 2022 at 11:02 am #661287
ToanLMK
Participant
- Topics: 8
- Replies: 9
You make it so clear, I understand now. Thank you so much, Mr.John
July 19, 2022 at 4:30 pm #661332
John Moffat
Keymaster
- Topics: 57
- Replies: 54496
You are welcome 🙂
(Are you watching my free lectures? They are a complete free course and cover everything needed to be able to pass Paper MA well.)
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