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What is the difference between direct and in direct material with example?

Accounting DirectX
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Question added by shakeel shakeel akhter
Date Posted: 2016/01/18
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Hatim Ismail
by Hatim Ismail , Cost Management Manager , Ideal Catering (subsidiary of Anan Holding)

Example

Business is Car Manufacturing

 

Direct Material would be Car window - directly related to the product

Indirect Cost would be Accountants salary - as accountants work does not directly affect the manufacturing of the car

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