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Help Me Point Out The Indirect Product Costs?

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Help Me Point Out The Indirect Product Costs?

Postby Ziv » Sat Oct 07, 2017 7:49 pm

Can someone help me point out the indirect product costs, please? I need it to prepare a schedule of manufacturing overhead. I have most of them already, just not too sure about these ones listed.

advertising expense

amortization expense: general

bad debts expense

delivery expenses

depreciation expense: selling

depreciation expense: general

freight-in

general insurance expense

general maintenance expense

general real estate expense

income tax expense

interest expense

interest revenue

marketing expenses

miscellaneous selling expenses

office expense

office salaries expense

other production costs

purchases of raw materials

purchases returns

sales commission expense

sales returns sales revenue

sale salaries expense

utilities expense: office

Thanks in advanced!
Ziv
 
Posts: 50
Joined: Sun Feb 02, 2014 2:15 pm

Help Me Point Out The Indirect Product Costs?

Postby Alion » Mon Oct 09, 2017 12:48 am

An indirect cost is a cost that cannot be traced to the cost object, directly.

There are three different ways to approach this problem.

Costs that are Plant wide overhead costs.

department overhead costs.

Activity Based costs.

The list you have can be catergorised into these three areas.The only question I have is the purchase of raw materials, I would include this in the direct costs of the product. All the others are either department, or plantwide costs, and form the manufacturing overhead costs of the product.
Alion
 
Posts: 45
Joined: Thu Mar 20, 2014 2:10 am


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