Are setup cost for a batch treated as direct expenses?
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Quick Summary
This discussion clarifies the classification of setup costs for a batch. Generally, all factory-related expenses, including setup costs, are treated as direct expenses. Conversely, sales, distribution, and administrative costs are typically categorised as indirect expenses.
Normally all Manufacturing ( factory ) related shown as Direct expense , and sales and distribution expense , Admin expense are shown under Indirect. expense .
Normally all manufacturing ( factory ) related expenses shown as Direct Expense , and sales and distribution expense , Admin Expense are shown under Indirect expense .
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