أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
Cost that can be readily identifiable or traced directly to exact cost center such as direct material, direct labor, fuel or power these are vary with the rate of output but are uniform for each unit of production, and are usually under the control and responsibility of the department manager. As a general rule, most costs are fixed in the short run and variable in the long run.
Direct costs can include fixed and variable costs. Direct fixed costs can be easily traced to cost objects and do not vary with the level of production. Direct variable costs vary with production levels.
Direct cost can be fixed and variable. For example, the Furniture manufacturing company is producing new furniture (suppose tables and chairs). Salaries to the employees shall be same for every year, no problem how many chairs and tables they manufacture. The owner of the company must purchase raw material for making furniture. This cost is the direct cost because it can be easily identifiable and this cost will change with production. The salaries are direct cost because it will not change with production. Variable cost like the cost of wood needed while making tables. Mixed costs like the cost of telephone where you pay a fixed X while idle and pay an additional Y for every minute of talk.
Direct cost is always variable cost , as the qauntity of output varies the cost also varies .
I agree with experts answer. Thanks for the invitation.
Direct cost is a variable cost
I leave the answer to the experts and the specialists in this field .
A cost that is traced back to specific cost object i.e. a product or a cost center etc. is a direct cost and traceable costs can be fixed costs in nature. For example, labor is paid on monthly basis, fixed amount of royalty paid every year.
Thanks for the invite ............................ Leave an answer to the experts
Direct cost is variable, but fix cost is constant
