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direct indirect cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › direct indirect cost

  • This topic has 5 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • December 8, 2021 at 6:56 am #643046
    Amrit123
    Participant
    • Topics: 26
    • Replies: 23
    • ☆

    are glue for books and resins for golf ball direct or indirect cost ??

    December 8, 2021 at 8:07 am #643064
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51952
    • ☆☆☆☆☆

    If the amount used in each book or in each golf ball can be measured then they would be direct costs.

    Why are you asking me this?

    December 8, 2021 at 8:58 am #643083
    Amrit123
    Participant
    • Topics: 26
    • Replies: 23
    • ☆

    i got tis question and it was asked:
    either it is direct cost or indirect cost without mentioning the amount…

    December 8, 2021 at 3:09 pm #643152
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51952
    • ☆☆☆☆☆

    Again, if it is possible to measure the amount (whatever the amount is) then it is a direct cost.

    Most likely they will not be able to measure the amount in which case it will be an indirect production cost.

    Did whoever gave you the question not provide you with an answer?

    December 9, 2021 at 4:58 am #643324
    Amrit123
    Participant
    • Topics: 26
    • Replies: 23
    • ☆

    i found that
    glue for book was mentioned indirect but

    resins for golf was direct

    December 9, 2021 at 5:27 am #643335
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51952
    • ☆☆☆☆☆

    The logic remains as I replied previously and as is explained in my free lectures.

    If it is measurable on a unit basis then it is a direct cost, if not then it is an indirect cost.

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