- This topic has 3 replies, 2 voices, and was last updated 11 months ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello tutor, I have a question related to labour cost classification of a company called Furniture Co:
“Pay for hours spent delivering orders to customers”
I do not understand why this cost is classified as inderect cost althought the action should be conducted by direct labour on a normal basis.
Thank you tutor!
Direct costs are those spend producing goods.
Cost of delivering to customers are indirect because they are not spent on production.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘direct vs indirect labour cost’ is closed to new replies.