What Is Indirect Production?

Direct production costs and indirect production costs divided according to the relationship between costs and product production processes.

Indirect production cost

Right!

Direct production costs and indirect production costs divided according to the relationship between costs and product production processes.

Indirect production costs refer to various expenses incurred for the organization of production and operation management, although not directly caused by the production process of the product, but related to the overall conditions of the production process. The cost is a cost that is not directly related to the production process of the product, such as the consumption of machine materials, the salaries of auxiliary workers and workshop management personnel, depreciation of the workshop house, etc.

The main components of indirect production costs

l Enterprise management fees. For example, salaries, travel expenses, office expenses, training expenses, etc. of managers.

2. Financial expenses. It refers to all expenses incurred to raise funds, interest expenses on borrowing and borrowing, exchange losses, and financial institution fees.

3. Taxes.

4. Others. For example, technology transfer fees, notarization fees, consulting fees, etc.