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Direct cost…

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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September 29, 2014 at 8:38 am #202117
umar2005
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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
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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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