Meaning
All indirect costs related to the factory/production that are not direct materials or direct labour. Still part of product cost, but cannot be traced easily per unit.
Typical examples:
Indirect factory costs
- Factory rent or factory building depreciation.
- Factory electricity, water, and utilities.
Indirect labour and materials in the factory
- Salary of factory supervisor or maintenance staff.
- Indirect materials like lubricants, cleaning supplies, screws, glue, etc. used in production but not worth tracing per unit.
Tiada ulasan:
Catat Ulasan