Mechanical Engineering - Industrial Engineering and Production Management - Discussion

Discussion Forum : Industrial Engineering and Production Management - Section 1 (Q.No. 42)
Direct expenses include
factory expenses
selling expenses
administrative expenses
none of these
Answer: Option
No answer description is available. Let's discuss.
5 comments Page 1 of 1.

Gurudas Goswami said:   5 months ago
Direct expenses means all expenses directly connected with the manufacture, purchase of goods, and bringing them to the point of sale. Direct expenses include carriage inwards, freight inwards, wages, factory lighting, coal, water and fuel, royalty on production, etc.

Rajkotha said:   4 years ago
Prime cost = direct material cost + direct labour cost + direct expenses.

Sushant Bhalla said:   7 years ago
Agree with you @Jeevaa.

Jeevaa said:   8 years ago

Is that prime cost is the direct expense?

Yudhisthir said:   9 years ago
Only the expenses which can be seen or felt directly in product are considered like raw materials, machining cost, power (used in development of product only). Not factory overheads and worker utilities are taken into account.

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