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Direct/indirect cost

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Direct/indirect cost

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  • September 21, 2014 at 4:56 am #195732
    Natalie
    Member
    • Topics: 3
    • Replies: 5
    • ☆

    Hi,

    I want to ask whether the below are direct or indirect costs..
    1. idle time paid for direct labour
    2. commission/bonus to direct labour
    3. overtime to direct labour

    thanks a lot!

    September 21, 2014 at 9:20 am #195755
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54479
    • ☆☆☆☆☆

    They are all indirect costs.

    Except if the overtime is for a specific job, then it is direct. Otherwise it is indirect.

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