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Direct cost…

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Direct cost…

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
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  • September 29, 2014 at 8:38 am #202117
    umar2005
    Member
    • Topics: 21
    • Replies: 12
    • ☆

    direct cost include — direct material— direct labur— and direct expense sir
    please explain it to me.. what is the direct expense ? i m my view these all are direct expense ..direct material+direct labur… then what is direct expense? explain ith example plzz ..

    September 29, 2014 at 3:44 pm #202173
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Direct expenses are other expenses that can be directly attributable (measured) to each unit.
    Royalties would be an example. If the company had to pay a royalty to the inventor of $1 a unit, then there would be a direct expense of $1.

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