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kaka assignment 2

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9 views

kaka assignment 2

Uploaded by

rajabjutt606
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SUBMIT TO:

Mis.

Abira

NAME: Abdul Rehman Farooqi


ROLL NO: BSECM-F22-009
SUBJECT:COST ACCOUNTING
TASK # 1
 Define Direct & Indirect
Material with Examples.
Direct Material
are those materials that are used in the production
of a product or service & became a part of the
finished item.
Example:
1. Direct Materials for making an LCD
o Glass
o Liquid Crystals
o Polymer Membrane
2. Direct Materials for production of Smartphone
o Screen
o Camera Modules
o Integrated Circuits
o Battery
3. Direct Materials for a baker
o Eggs
o Sugar
o Oil
o Water
o Flour
4. Direct Materials for production of cloths
o Cotton
o Bast Fibers
o Leather
o Experimental Fabrics
o Wool
o Viscose
o Notions & Hardware
5. Direct Materials for making bags
o Leather
o Nylon
o Cotton
o Denim
o Mesh
o Vegan leather
o Straw
o Canvas
Indirect Material
are those materials that support the production
process but are not incorporated in final product.
Example:
1. For ICE CREAM
o Ice-Cream Scoops
o Freezers Measuring Cups
2. In Clothing
o Thread Buttons
3. In Construction
o Cleaning Supplies Tape
o Fitting Disposable Tools
o Personal protective equipment
o Glues & Adhesives
o Oil & Lubricants
4. For Furniture
o Glue Nails Fitting
5. For Carbonated Drinks
Electricity Property Tares
Advertising Oil for Machines
----------------------
 Define Direct & Indirect Labor
with Examples.
Direct Labor
Direct Labor refers to all the persons that directly
engaged in the production of a good or service.
Examples
1. The Labor in construction of houses are Raw
Material Delivery people called direct labor.
2. The employes producing bicycles are direct
labor because they Assembles, weld, and paints
3. A hair stylist at a salon who perform hair cuts ^
other services are direct labors
4. The expert of making chairs knows how to make
a chair is also considered as direct labor.
Indirect Labor
Indirect labor refers to employes who are not
involved in planning & construction project.
However, they are involved in the day to day
running of the business.
Examples
1. Legal Advisors 3.Delivery Driver
2. Office Manager 4.Packers/Dispatch Staff
5,Receptionist in Companies.
----------------------
 Define FOH with Examples.
Factory Over Head
Is the Cost incurred during the manufacturing
process, not including the cost of direct labor &
materials
Examples
1. Insurance
2. Property taxes
3. Utilities
4. Rent
5. Salaries of Material Managing

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