Classify the following items into direct and indirect cost: [Oct. – 04]
(i) Carriage outwards ` 800.
(ii) Cost of raw materials ` 1,200.
(iii) Depreciation on office furniture ` 400.
(iv) Advertising expense ` 750.
(v) Factory Rent ` 600.
(vi) Salesman’s commission ` 200.
Soln:
(i) Indirect Cost (ii) Direct Cost
(iii) Indirect Cost (iv) Indirect Cost
(v) Indirect Cost (vi) Indirect Cost

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