Can anyone explain me in cost sheet which exp are in direct expense and in factory overhead and please explain with reason

Abu · 31 Oct 2025

All expenses traceable to the final product and costs which are directly influenced/related to the product design are called as Direct Cost. Eg: Direct Material, Direct Labor & other Direct expenses such as job work charges, royalty, moulds & patterns, etc. All cost not directly traceable to the product/its design are called as Indirect Cost. Eg: Factory overhead - indirect cost spent inside the factory. Like factory machine rent & electricity. Directly Cost - are Primary Cost. Indirect Cost - are Secondary Cost.