This document discusses the classification of indirect costs in manufacturing. It defines indirect materials as materials that do not become part of the final product and cannot be traced to a specific unit, giving examples like nails, oil, and printing supplies. Indirect labor is labor like supervision and housekeeping that supports overall production rather than a specific product. Indirect expenses are operational costs like rent, utilities, and depreciation. The document provides examples of indirect materials, labor, and expenses for manufacturing a wooden chair and cotton shirt.

1. Asst. Prof. Monika Nitin Kulkarni(SCMIRT)

2. Indirect
Material
Indirect
Labour
Indirect
Expenses
ELEMENT WISE CLASSIFICATION

3. INDIRECT MATERIAL
Does not
become
part of end
Product
Can not be
traced with
an unit of
product

4. INDIRECT MATERIAL-Examples
1.PRODUCT-
WOODEN
CHAIR
Nails,Oil &
Grees For
Lubricating
Drilling
Machine,Pri
nting &
Stationery
2.PRODUCT
-COTTON
SHIRT
Thread,
Secondary
Package,
Machine
Consumable
s

5. INDIRECT LABOUR-Examples
1.PRODUCT-
WOODEN
CAHAIR
Superwisor Salry
Housekeeping
Labour
2.PRODUCT-
COTTON SHIRT
Factory Manager
Salary,Store Keeper
Salry

6. INDIRECT EXPENSE
1.Wooden Chair-
Rent,Electricity,Insurance
2.Cotton Shirt-Machine
Depreciation,Repairs,Telephone
Expense

7. THANKS!