Page 9 - PowerPoint Presentation

RECAP

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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