Direct material , Direct labour and direct expneses combinnly called
Factory cost
Office cost
Total cost
Prime cost
you have four option hassle up
Answers
Answer:
prime cost because direct material , direct labour and direct expenses calculate for prime cost
Answer:
1. Direct Material
It represents the raw material or goods necessary to produce or manufacture a product. The cost of direct material varies according to the level of output. For example, Milk is the direct material of ghee.
2. Indirect Material
It refers to the material which we require to produce a product but is not directly identifiable. It does not form a part of a finished product. For example, the use of nails to make a table. The cost of indirect material does not vary in the direct proportion of product.
. Direct Labour
It refers to the amount which paid to the workers who are directly engaged in the production of goods. It varies directly with the level of output.
4. Indirect Labour
It represents the amount paid to workers who are indirectly engaged in the production of goods. It does not vary directly with the level of output.