• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Direct and indirect costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Direct and indirect costs

  • This topic has 4 replies, 2 voices, and was last updated 2 months ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • November 30, 2022 at 7:12 am #672902
    krrish2005
    Participant
    • Topics: 4
    • Replies: 5
    • ☆

    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?

    November 30, 2022 at 7:13 am #672903
    krrish2005
    Participant
    • Topics: 4
    • Replies: 5
    • ☆

    Sir it’s hire*

    November 30, 2022 at 9:05 am #672912
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51563
    • ☆☆☆☆☆

    As 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.

    November 30, 2022 at 10:02 am #672919
    krrish2005
    Participant
    • Topics: 4
    • Replies: 5
    • ☆

    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?

    November 30, 2022 at 3:23 pm #672948
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51563
    • ☆☆☆☆☆

    If 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).

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • Ravendra Arjune on FA Chapter 22 Questions Group Accounts The Consolidated Statement of Financial Position (1)
  • Ken Garrett on The Nature of Performance Management – ACCA Advanced Performance Management (APM)
  • Mustafy on Objective of financial reporting – ACCA Financial Reporting (FR)
  • John Moffat on IAS 16 Property, Plant and Equipment – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy