Question
Why Cost of Goods Sold is a direct cost? COGS=BFG+COGM-EFG =BFG+(Bwip+Total Manufacturing Cost-Ewip)-EFG =BFG+(Bwip+(DM used+DL+OH allocated)-EWIP)-EFG It is effected by DM, DL, and OH. OH
Why Cost of Goods Sold is a direct cost?
COGS=BFG+COGM-EFG
=BFG+(Bwip+Total Manufacturing Cost-Ewip)-EFG
=BFG+(Bwip+(DM used+DL+OH allocated)-EWIP)-EFG
It is effected by DM, DL, and OH.
OH is an indirect costs, so why is COGS a direct costs?
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Data Analytics for Accounting
Authors: Vernon Richardson
1st edition
1260375196, 9781260375183 , 978-1260375190
