Should you swap out the fluid every few thousand miles, or wait until you've driven 30,000 miles or more? My owner's manual says I should change the transmission fluid every 30,000 miles, but my father swears it should be changed as often as engine oilevery 4000 to 5000 miles.
Direct labor can be logged into cash flow during the same month in which it is accrued. Material costs, on the other hand, are a little different. You need to include the material cost in cash flow using a time frame that allows you to convert the cost of raw material in cash flow into finished goods for sale. Therefore, if it requires 60 days to convert raw material to finished goods, and your payable period is 30 days after delivery, then enter the cost of goods under material in cash flow 30 days before sales are logged. Working capital can be determined from operating expenses.
Direct material are those material which are easily identified, conveniently measured and directly charged to the cost of production. It is also part of the finished product. Example of direct materials are Timber in cases of furniture making, Leather in case of shoe making, cotton in case of shirt making etc. Indirect Material are those materials which cannot be conveniently identified & allocated to the cost centre or cost unit. It does also not form part of the finished product.