Accountancy, asked by anusiby7550, 9 months ago

difference between factory cost and factory expencess

Answers

Answered by pintusingh41122
0

The difference is shown below:

Explanation:

Factory Cost

It is that cost which is related to the manufacturing of goods. It is divided into 3 categories:

1. Direct Material - Cost related to the material required for construction of goods.

2. Direct labor - It is associated or linked with the production of goods.

3. Manufacturing overhead- Related to run a factor like rent, utilities, production supples and depreciation.

Factory Expense

This is related to third category of the Factory cost which is the cost associated with manufacturing overhead not including labor and material cost.

Answer:

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