Cost Accounting Question:

Define indirect manufacturing costs under traditional cost accounting?

Cost Accounting Interview Question
Cost Accounting Interview Question

Answer:

Under traditional cost accounting, the indirect manufacturing costs are spread or allocated to the products manufactured based on direct labor hours, direct labor costs, or production machine hours. However, in recent decades the indirect manufacturing costs have increased significantly and are less likely to be caused by the quantity of direct labor or production machine hours.


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Define in-direct materials in cost accounting?List some examples of indirect manufacturing costs?