Page 11 - 5.2 i. Manac Costing ITC Summarised Notes
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ITC EXAM PREP
Cost terms and concepts
• Direct costs can be traced easily or physically to a
particular cost object
• Indirect costs cannot be traced easily or physically
to a particular cost object
• Manufacturing costs, also called factory costs or
production costs, are the total of the costs
incurred in the manufacturing or production
process: direct material, direct labour, direct
expenses and manufacturing overheads.
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