Direct cost and indirect cost
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 April 2014
can anybody tell me whats the difference b/w DIRECT COST AND INDIRECT COST in mfg unit and in trading unit
27 April 2014
Direct cost is that cost which can be easily identified to a particular product/service. Its percentage would be high.
Indirect costs on the other hand are those costs which cannot be conveniently attributed one particular product.
For example:
to manufacture a gold ring and a chain the gold, the labour charges are direct costs. whereas the polishing or cleaning agent/chemical is an indirect expense which cannot be exactly ascertained with a particular product.
Regards,
Santosh G Kalburgi
Cost Accountant
9742022309
Indirect costs on the other hand are those costs which cannot be conveniently attributed one particular product.
For example:
to manufacture a gold ring and a chain the gold, the labour charges are direct costs. whereas the polishing or cleaning agent/chemical is an indirect expense which cannot be exactly ascertained with a particular product.
Regards,
Santosh G Kalburgi
Cost Accountant
9742022309
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Under construction property in ITR
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Gift of mutual fund units to daughter
- Not able to file ITR
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- New Garden in Place of Old Garden
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
