In manufacturing companies, labor and materials costs are broken into direct and indirect components. Direct costs are those that can be traced directly to the products that are being produced, while ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

Direct materials are the supplies you use to manufacture your inventory: wood for cabinets, steel for girders or wool for coats. Accountants distinguish direct materials from indirect materials, which ...