The main components of inventory costs:
direct materials – these are items that are used dir...
The main components of inventory costs:
direct materials – these are items that are used directly in building an inventory item. from my workplace example, this would include heads, shafts and grips.
direct labor – these are the people directly working on the product (not the supervisors – these would be indirect labor) overhead – these are all of the other costs that get spread over the various products. a good example would be rent, electricity etc.
has anyone had experience with these types of costs?
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