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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Treatment of Direct and Indirect Costs
Rent on special production equipment (5000 per year plus 0.2 per unit produced).
How it will be treated?
Will it be treated as a direct expense or a Manufacturing OH or a Non-Manufacturing OH?
The 0.2 is a direct expense. The 5,000 is a production overhead.
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Thank you Sir!
You are welcome 🙂