27 April 2014
Direct cost is that cost which can be easily identified to a particular product/service. Its percentage would be high. Indirect costs on the other hand are those costs which cannot be conveniently attributed one particular product. For example: to manufacture a gold ring and a chain the gold, the labour charges are direct costs. whereas the polishing or cleaning agent/chemical is an indirect expense which cannot be exactly ascertained with a particular product.
Regards, Santosh G Kalburgi Cost Accountant 9742022309
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