1, indirect costs is the symmetry of "direct costs". Refers to the manufacturing enterprise production units (sub-factory, workshop) for the organization and management of production costs, including the production unit management personnel salaries and benefits, office expenses, utilities, machinery and material consumption, labor protection, machinery and equipment depreciation, repair costs, amortization of low-value consumables and so on.
Accounting units usually collect these costs through the "manufacturing overhead" account, and at the end of each accounting period, allocate the collected manufacturing overheads to the production costs of the relevant products according to certain criteria (such as the number of man-hours consumed in the production of various products).
2, direct costs is the symmetry of "overhead". For a particular product consumed, can be based on original documents directly to the cost of the product. Direct and indirect costs and indirect costs are divided according to the method of production costs charged to product costs. Whether an expense is a direct cost depends on whether the cost can be charged directly to the production cost of the product.
Generally speaking, the raw materials used by an industrial enterprise to produce a product, which constitute the entity of the product, and the piece-rate wages of the production workers are direct expenses. In an enterprise or workshop that produces a product, all of the production costs of the product can be directly charged to the cost of that product, and are therefore direct expenses.
Expanded:
Each direct production cost incurred by an enterprise is debited to the account "Production Costs - Basic Production Costs, Auxiliary Production Costs ", and other accounts.
Enterprise production workshops should bear the manufacturing costs, debit "production costs - basic production costs, auxiliary production costs" account, credit "manufacturing costs" account. account.
The labor and products provided by the auxiliary production workshops for the basic production workshops, management and other departments are allocated to the beneficiaries at the end of each month in accordance with certain allocation criteria.
Debit "production costs - basic production costs" account, "administrative expenses", "selling expenses ", "other operating expenses", "construction in progress" and other accounts, credit "production costs - auxiliary production costs" account. The cost of production - auxiliary production cost" account.
In order to reflect the direct costs incurred by a company, certain accounting entries need to be set up. In a manufacturing company, it is through the establishment of "production cost" accounting account to record the occurrence of various direct costs.
Production cost is the production cost incurred by a manufacturing enterprise for industrial production, including the production of various products (including finished products, self-made semi-finished products, and the provision of labor services, etc.), self-made materials, self-made tools, and self-made equipment.
In order to reflect the production costs incurred by the basic production plant and auxiliary production plant, you need to set up "basic production costs" and "auxiliary production costs" two sub-accounts under the "cost of production" accounting account. The two subdivided accounts are "basic production cost" and "auxiliary production cost".
Direct materials, direct labor and other direct costs incurred by the enterprise are directly charged to the basic production costs and auxiliary production costs, which belong to the direct costs incurred by the enterprise's auxiliary production workshops for the production of products.
Should be recorded in this account "auxiliary production costs" line item, and then transferred to this account "basic production costs" line item. Indirect costs incurred by the enterprise, first in the "manufacturing costs" account, the end of the month, you need to be in accordance with certain allocation criteria, allocated to this account.
Baidu Encyclopedia - Indirect Costs
Baidu Encyclopedia - Direct Costs