Page 16 - UNISA Manac Cost Course Slides Part 1
P. 16
TEST 3 - COSTING
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.
16
