The paper “ Financial and Non-Financial Performance Indicators” is a comprehensive variant of the presentation on finance & accounting. Direct Costs are those which can be directly traced to cost objects. Most direct costs are variable even though it may not be the case all the time. Examples of direct costs include wages incurred during production and the costs of materials such as sand and cement for the production process. Indirect costThese are expenses that cannot be attributed to the particular cost object and are known as indirect costs. They are able to benefit multiple cost objects and it would not be practicable to trace them to an individual product and activity.
An example of these costs would be the insurance costs of an enterprise or the costs of depreciation of firm equipment. Fixed costDepreciation: this represents the gradual charge to expense for tangible assets over the useful existence of the asset. Property Taxation: It is the taxation that is charged to the enterprise by the government based according to the asset costs. Variable costDirect materials: The purest variable cost includes the raw materials which go into products.
Production supplies: Things like machinery are consumed according to the amount of usage and so they vary according to the production volumes. Step cost/Semi variable costSemi variable costs have elements of fixed and variable costs because of the presence of these components. Telephone expense is an example of semi-variable costs because it entails fixed components like line rent and fixed subscriptions along with the subscription charges per period of time. Delivery cost is also an example as there is a fixed component of depreciation cost and a variable part of the expenditure of fuel.