Create an account
difference between direct and indirect costs
a direct cost can be traced to the object and an indirect cost cannot
anything that radically effects cost. Usually a variable cost but can be a fixed cost if it is over a long time span
indirect manufacturing costs
related to producing the cost object but cannot be traced in an economically feasible way -- also called overhead costs
direct material costs=
begging inventory+ direct material purchases-ending inventory= direct material costs
total manufacturing costs=
direct materials used+direct manufacturing labor+manufacturing overhead costs
cost of goods manufactured
cost of goods brought to completion. So the cost of just the total produced finished goods total manufacturing costs-wip= cogm
all manufacturing costs that are not direct materials. It represents all costs incurred while converting materials into a final good
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together