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The manufacturing account

1.6 Other direct costs

A direct cost is one that can be identified with units of production. It is a
cost that varies according to the level of production e.g. raw materials.

Examples of other direct costs are:

 Direct labour – The wages and associated costs of paying staff involved in
producing the goods.

 Direct expenses – The other costs that can be identified with the units of
production. These are more difficult to establish, as most expenses are more
general in nature.

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