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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › direct indirect cost
are glue for books and resins for golf ball direct or indirect cost ??
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?
i got tis question and it was asked:
either it is direct cost or indirect cost without mentioning the amount…
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?
i found that
glue for book was mentioned indirect but
resins for golf was direct
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.