Carrying costs should be recorded as direct, indirect, or both?
Carrying costs should be recorded as direct, indirect, or both?
Homework Answers
Carrying costs or holding costs should be recorded as both, direct and indirect cost.
The cost of money locked or tied up in the inventory, storage space, insurance and handling equipments form direct cost of carrying the inventory.
The cost of managing the inventory, logistics support and the cost of people doing these functions are indirect costs of carrying the inventory. Examples include costs of taking physical inventory counts, theft, obsolescence, damage.
The creation and carrying of accounts receivable has both direct and indirect costs, but it can...
The creation and carrying of accounts receivable has both direct and indirect costs, but it can also have the enormous benefit of increasing sales. Let’s talk about how you would establish a brand new credit department in a company whose approval is required for all sales. What would you do first if you were the Credit Manager? How would you determine that customers were qualified to buy from you on open account ?
Compare direct costs to indirect costs. Give an example of a cost at a company that...
Compare direct costs to indirect costs. Give an example of a cost at a company that could be a direct cost at one level of the organization but would be considered an indirect cost at a different level of that organization. Explain why this same cost could be both direct and indirect (at different levels).
Discuss the relationship of direct and indirect costs in project management. Define Indirect and Direct Costs....
Discuss the relationship of direct and indirect costs in project management. Define Indirect and Direct Costs. From book Operations and Supply Chain Management, 8th ed. Chapter 9 – Project Management Chapter 10 – Supply Chain Management Chapter 11 – Global Sourcing and Logistics
Please define direct costs and indirect costs and then prepare a list of three direct and...
Please define direct costs and indirect costs and then prepare a list of three direct and three indirect costs for the Accounting Department
Regardless of the system used in departmental cost analysis: Multiple Choice Neither direct nor indirect costs...
Regardless of the system used in departmental cost analysis: Multiple Choice Neither direct nor indirect costs are allocated. Direct costs are allocated, indirect costs are not. Both direct and indirect costs are allocated. Total departmental costs will always be the same. Indirect costs are allocated, direct costs are not.
Conversion costs consist of a. direct materials costs and direct labor costs. b. direct labor costs...
Conversion costs consist of a. direct materials costs and direct labor costs. b. direct labor costs and overhead costs. c. direct materials costs and overhead costs. d. direct labor costs and indirect labor costs. The three elements of product costs are a. direct materials, work in process, and overhead. b. direct materials, work in process, and finished goods. c. direct materials, direct labor, and overhead. d. direct materials, direct labor, and period costs. 7. Which of the following costs is...
2. Product costs include: a. all direct and indirect manufacturing costs b. only direct manufacturing costs...
2. Product costs include: a. all direct and indirect manufacturing costs b. only direct manufacturing costs c. all operating expenses of the accounting period d. only conversion costs 3. The distinction between product costs and period exper a. whether the costs are direct or indirect b. whether the costs are variable or fixed c. whether the costs are part of inventory or cost of go d. whether the costs are manufacturing or nonmanufa 4. During a recent month, the Silver...
Costs that can be easily traced to a specific department are called: direct costs. indirect costs....
Costs that can be easily traced to a specific department are called: direct costs. indirect costs. product costs. manufacturing costs. processing costs.
define a cost object, direct costs and indirect costs and explain variable costs and fixed costs...
define a cost object, direct costs and indirect costs and explain variable costs and fixed costs (in your own words)
Direct and Indirect Costs
ubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$7.00Direct labor$4.00Variable manufacturing overhead$1.50Fixed manufacturing overhead$5.00Fixed selling expense$3.50Fixed administrative expense$2.50Sales commissions$1.00Variable administrative expense$0.50 Required:1. Assume the cost object is units of production:a. What is the total direct manufacturing cost incurred to make 20,000 units?b. What is the total indirect manufacturing cost incurred to make 20,000 units? 2. Assume the cost object is the...
Compare direct costs to indirect costs. Give an example of a cost at a company that could be a direct cost at one level of the organization but would be considered an indirect cost at a different level of that organization. Explain why this same cost could be both direct and indirect (at different levels).
Conversion costs consist of a. direct materials costs and direct labor costs. b. direct labor costs and overhead costs. c. direct materials costs and overhead costs. d. direct labor costs and indirect labor costs. The three elements of product costs are a. direct materials, work in process, and overhead. b. direct materials, work in process, and finished goods. c. direct materials, direct labor, and overhead. d. direct materials, direct labor, and period costs. 7. Which of the following costs is...
2. Product costs include: a. all direct and indirect manufacturing costs b. only direct manufacturing costs c. all operating expenses of the accounting period d. only conversion costs 3. The distinction between product costs and period exper a. whether the costs are direct or indirect b. whether the costs are variable or fixed c. whether the costs are part of inventory or cost of go d. whether the costs are manufacturing or nonmanufa 4. During a recent month, the Silver...
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