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Former Member
Nov 21, 2012 at 07:04 AM

Direct cost & Indirect cost

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Hi All,

In the production cost centers, costs are posting with quantity reference (like labor cost, wages, machine cost with ref to hours & transport cost with reference to tons). On the other hand, other expenses are posting to the same production order (like telephone exp, hotel expenses, travelling)

By creating the activities, we can allocate the expenses posted with ref to quantity to the product . Here my doubt is how to allocate the other expenses to the product.

In this case shall we follow dependant planning (cost center vs. cost element vs. activity type) to apply the process cost to the product?

thanks