Sir i am having doubt in somethings
Firstly those cost which can be found in a specific cost unit are direct like material to make shirt
But like hure of a Specific tool or equipment is also direct...but we cannot find it in a particular cost unit?
Another doubt : if hire of SPECIFIC tool or equipment is direct ...then if question asks lubricants for SPECIFIC MACHINE USED FOR MAKING A PARTICULAR PRODUCT...will it be direct material or indirect?
Again if it says depreciation of machine(general) it's indirect expense
If asked depreciation of specific machine...will it be direct expense?
Ask the Tutor ACCA MA
Direct and indirect costs
Sir it's hire*
3y ago#2As I explain in my free lectures, direct costs are those that can be measured for individual units. These are usually just materials and labour. All costs that cannot be measured for each individual unit are indirect costs. I give examples of both in my lectures.
Have you watched my lectures? They are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
Yes sir i have watched your free lectures
So sir if in a seldom condition if there is a expense then if it's for specific tool it will be direct otherwise normally there will be direct material and labour only
Right sir?
3y ago#4If you are asking about calculating the standard unit cost, then the hire charges, the lubricants, and the depreciation are all indirect production costs (i.e. indirect overheads).
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