Direct and Indirect Costs PREMIUM
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Learning SummaryDescription:
This training module examines how to categorize costs in relation to the item being measured. It discusses the nature of direct and indirect costs and how these are used to calculate the total cost of an item. The module also explains the allocation process, which is the assignment of common costs to an item, and the selection of the allocation basis. Finally, it will demonstrate through the use of a simple example, how these concepts can be used to make more informed decisions.
Prerequisites:
Who should complete this module:
Managers, supervisors, entrepreneurs, and professionals in any discipline who work in service or manufacturing operations; CPA, CMA, CGMA, and other accounting professionals; educators and students in business and management accounting.
Learning Objectives:
In this module, you will learn to:
1. Define direct and indirect costs.
2. Classify direct and indirect costs in relation to a cost object.
3. Assign indirect costs using an appropriate allocation base.
4. Use this cost classification for decision making.
1. Define direct and indirect costs.
2. Classify direct and indirect costs in relation to a cost object.
3. Assign indirect costs using an appropriate allocation base.
4. Use this cost classification for decision making.
Competencies Acquired:
How to identify and use direct and indirect costs for decision-making purposes.
Program Level:
Intermediate
Duration of Video:
8:56
CPE Credit:
0.5
Delivery Method:
QAS Self Study
Field of Study:
Finance
Additional Info:
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Last Revision Date:
1 Aug 2019
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