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Indirect and direct costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Indirect and direct costs

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
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  • May 27, 2021 at 4:51 pm #621934
    Avatarmiahatterslet
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    This may seem like a silly question but is machinery an indirect or direct cost?
    Thank you in advance!

    May 28, 2021 at 7:51 am #621982
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    It is neither – it is the purchase of a non-current asset.

    Direct and indirect costs relate to expenses.

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