I just wanted to say a huge thank you. I am studying Transport Manager (CPC) in UK and there is a module on finance and accounting. This video just cascaded lots of info into place with regards to pricing jobs in haulage. E.g. Direct costs to carry out my service would be truck fuel, hotel stays for driver, road tolls etc. Indirect costs would be the general business administration etc. Those I need to allocate to ensure my company makes a profit. It's all making sense thanks to your concise explanation. Gracias!
SOME MORE EXAMPLES IN TERMS OF A BICYCLE Direct: tires seats handlebars cables bike manager wages bike maker benefits Indirect factory accounting factory rent factory managers salary insurance on factory factory equipment depreciation (other than units-of-production)
Does anyone know why if the cost object is the manufacturing department overhead would be direct? When the definition of overhead is literally indirect 😭
Common fixed costs are shared among multiple segments within a business. if one segment is discontinued, the common costs remain and are spread over the remains parts of the business
What´s the course where you explain all this? I looked at the Financial Statements: Learn Accounting. Unlock the Numbers udemy course. But I don´t see this part included. Thanks.
Marketing is actually neither indirect or direct since it isn't attributed to production or service. It would be a period cost under operating expenses.
The example is too simple however exam questions are too confusing. how can salary of an employee can be a direct cost and indirect cost in some circumstances. I am confused.
So sorry you’re confused! Employees that are directly working on the product are Direct costs. Any other employee who works in the facility where the product is but doesn’t work directly on the product is INDIRECT. (ie janitors) More videos coming soon!
The salary of a direct labourer, can be separated into direct and indirect cost. Specific case in point is when that laborer has an idle time or the salary of the same in doing rework, the two scenarios will form part of indirect labor cost. :)
Thank you!!! These college books seem to make an easy explanation so freaking difficult!!!!
I know! That’s why I started this channel haha. Enjoy 😎
I just wanted to say a huge thank you. I am studying Transport Manager (CPC) in UK and there is a module on finance and accounting. This video just cascaded lots of info into place with regards to pricing jobs in haulage.
E.g. Direct costs to carry out my service would be truck fuel, hotel stays for driver, road tolls etc.
Indirect costs would be the general business administration etc. Those I need to allocate to ensure my company makes a profit.
It's all making sense thanks to your concise explanation. Gracias!
I was listening you in 1,25 speed :D
his speed is perfectly match with my English skill :)
me too lmao
SOME MORE EXAMPLES IN TERMS OF A BICYCLE
Direct:
tires
seats
handlebars
cables bike
manager wages
bike maker benefits
Indirect
factory accounting
factory rent
factory managers salary
insurance on factory
factory equipment depreciation (other than units-of-production)
Not only are these videos super helpful but you are too😭 still replying to comments after 5 years, you are very appreciated!
really helpful I studied this in my book for 10 times but couldn't understand, thank you so much
Nice & crisp presentation delivered in a cool fashion :) good work dude !
For audit the direct logistics cost which one is the optimum methods among：ABC（Activity based costing），total cost of ownership，landed cost.
I swear I was over thinking this lol got it. Thank you!
I wish this man was my professor
Very helpful. Thank you.
Awesome, would rent be considered direct cost? can it also be consider direct cost? What examples would decide in which cost it falls under?
Factory rent is considered an indirect cost since it isn’t directly traceable to the product being produced.
@@Accountinguniv but for example, if we would talk about cost of owning a factory, rent would be considered as direct cost ?
Thank you 🙏
thank you.. this is much help to me 😍
Help please,is a office and sales staff direct or indirect costs and factory operatives
Neither. These are considered period costs, not product costs.
@@Accountinguniv thanks for letting me know
Thanks, this was helpful :)
we need more examples please :(
Thank you very nicely explained
great example
Thanks gotten it now
Thank you. Really good.
Are 1st year start-up costs in the direct and indirect costs?
do you know how to convert indirect costs to direct costs?
Does anyone know why if the cost object is the manufacturing department overhead would be direct? When the definition of overhead is literally indirect 😭
What about Common Costs?
Common fixed costs are shared among multiple segments within a business. if one segment is discontinued, the common costs remain and are spread over the remains parts of the business
tks
Can we say that Direct cost is uninsured cost and indirect cost in insured cost.....?
I need more topics in cost accounting pls
Navya Kearthi For more videos, check out EZAccountingReviews.com
What´s the course where you explain all this? I looked at the Financial Statements: Learn Accounting. Unlock the Numbers udemy course.
But I don´t see this part included.
Thanks.
Great question. You can find what you need here:
Managerial Accounting Accelerator 👉 bit.ly/aua-mgr
Is it not the case that direct costs are allocated and indirect cost are absorbed?
Correct. Direct costs are traceable to the cost object. Indirect costs must be allocated 👍
This guy looks so much like Stephen Amell from 'the arrow' if he didn't drop out of school
Clear and basic, but where is the examples video ?
Hi Reem, thanks for watching. At this time, there is practice video, hopefully soon!
Where is the next video
Is marketing a direct cost?
Marketing is actually neither indirect or direct since it isn't attributed to production or service. It would be a period cost under operating expenses.
The example is too simple however exam questions are too confusing. how can salary of an employee can be a direct cost and indirect cost in some circumstances. I am confused.
So sorry you’re confused! Employees that are directly working on the product are Direct costs.
Any other employee who works in the facility where the product is but doesn’t work directly on the product is INDIRECT. (ie janitors)
More videos coming soon!
The salary of a direct labourer, can be separated into direct and indirect cost. Specific case in point is when that laborer has an idle time or the salary of the same in doing rework, the two scenarios will form part of indirect labor cost. :)