(1)Direct material: Direct material is one which can be directly
or easily identified in the product. e.g. Timber in furniture, cloth in dress
etc.
(2)Indirect material: Indirect material is one which can't be
directly or easily identified in the product. e.g. Lubricants, Packing
materials etc.
(3)Direct wage: Direct wage is given to those persons who are
directly involved with particular job, process or product.
ex-Wages paid to tailor, Fees paid to tailor
(4)Indirect wage: Indirect wage is given to those persons who
are indirectly involved with particular job, process or product.
ex-GM's salary, Foreman's salary
(5)Variable expense: An expense that changes, in total dollar
amount, with the change in the level of activity is called variable expense.
ex-Sales commission, Shipping cost, Lubricants cost
(6)Fixed expense: An expense that does not change, in total,
with the change in activity is called fixed expense.
ex-Rent, Insurance, Property taxes etc.
(7)Semi variable expense: An expense that has the
characteristics of both variable and fixed expense is called mixed or
semi-variable expense
ex-Automobile, Telecommunication, Power & Water
