Indirect manufacturing costs
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Indirect manufacturing costs is all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way. Also called manufacturing overhead costs and factory overhead costs.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Indirect manufacturing costs. All manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way. Also called manufacturing overhead costs and factory overhead costs.
