Classify the following items into direct and indirect cost: [April – 03]
Items Classification
(i) Carriage expenses on raw materials Direct Cost
(ii) Advertisement expenses Indirect Cost
(iii) Office Rent Indirect Cost
(iv) Packing expenses Indirect Cost
[Note: Primary Packing Materials – Direct Cost
Secondary Packing Materials – Indirect Cost]
(v) Workers Wages Direct Cost
(vi) Raw material charges Direct Cost
(vii) Depreciation on Furniture Indirect Cost
(viii) Legal expenses Indirect Cost

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