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How we can determine if the cost is related direct or indirect to the manufactured goods and which one of costs we put on product cost ?

Accounting Cost Accounting Cost Control Production
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Question added by Ammar Alnabulsi , sap implementation specialist , yousef alroumi
Date Posted: 2017/02/14
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Tamer Assaf
by Tamer Assaf , Construction Division Manager , Wurth Gulf FZE

Direct costs are linked to the output quantity like raw material, amount of labor hired, utility bills paid for the work. 

Indirect costs are those paid for the very existence of the establishment or factory such as license, land, rent etc...

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