An activity driver, also known as an activity cost driver or cost driver, is a factor that causes or influences the incurrence of a particular cost within an organization. Activity drivers are used...
Category: Managerial Accounting
Indirect materials are materials or supplies that are not directly incorporated into the final product but are necessary for the overall production or operation of a business. These materials support...
Indirect labor refers to the labor cost incurred in the production process that is not directly involved in the conversion of materials into finished products. It includes the wages and benefits of...
Selling and administrative expenses, also known as selling, general, and administrative expenses (SG&A), refer to the costs incurred by a company in its day-to-day operations that are not...
An indirect cost refers to a cost that is not easily or directly traceable to a specific product, service, or cost object. Unlike direct costs, indirect costs cannot be conveniently and accurately...
Direct materials refer to the raw materials or components that are directly and visibly incorporated into a finished product. These materials are used in the manufacturing or production process and...