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Sir i am having doubt while revising my concepts of MA kindly help:
1)Sir if a supervisor is oveeseeing the work of labor related to a specific product will be direct or indirect labor?2) Also rent of a factory where only one /specific product is produced is direct or indirect expense?
A supervisor oveeseeing the work of labour related to a specific product will still be indirect as they are supervising, not involved in production.
The cost of renting a factory where say shirts are manufactured is classified as an indirect cost because it would be virtually impossible to relate such costs to shirts only, if other clothes, such as dresses and suits were also made in the same factory. If it does make shirts only then it is direct.
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