1.

Distinguish between Direct Costs and Indirect Costs

Answer»
Basis of DifferenceDirect CostsIndirect Costs
1. RelationshipDirectly and wholly related to a particular unit or centre of cost.Not directly and wholly related to a parituclar unit or centre of cost.
2. Components(a) Direct Meterial ;
(b) Direct Labour;
(c) Direct Expenses.
(a) Indirect Meterials;
(b) Indirect Labor ;
(c) Indirect Expenses.
3. ExamplesSugarcane used in a sugar mill etc.Fuel, wages of store keeper etc



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