Classify items on the basis of cost


0
2 comments

Classify the following items on the basis of cost: [April – 05]
(a) On the basis of functions:
(i) Legal expenses (ii) Rent of warehouse
(iii) Packing expenses (iv) Fuel and oil.
(b) On the basis of traceability to product:
(i) Office cleaning (ii) Factory supervision
(iii) Freight inward charges (iv) Raw materials imported
(c) On the basis of relation to change in the volume of activity:
(i) Factory insurance (ii) Depreciation of office building
(iii) Direct labour (iv) Show room expenses.

Advertisement

Soln:
(a) On the basis of functions: [Factory, office and Administration and Selling and
Distribution Expenses]
(i) Legal expenses – Office and Administration Cost
(ii) Rent of warehouse – Selling and Distribution Cost
(iii) Packing expenses – Selling and Distribution Cost
(iv) Fuel and oil. – Factory Cost
(b) On the basis of traceability to product: [Direct/Indirect Cost]
(i) Office cleaning – Indirect Cost
(ii) Factory supervision – Direct Cost
(iii) Freight inward charges – Indirect Cost
(iv) Raw materials imported – Direct Cost
(c) On the basis of relation to change in the volume of activity: [Fixed/Variable/Semi
Fixed/ Semi Variable]
(i) Factory insurance – Fixed Cost
(ii) Depreciation of office building – Variable Cost
(iii) Direct labour – Fixed Cost
(iv) Show room expenses. – Fixed Cost

Advertisement
The following two tabs change content below.
MT UVA- University, Vocational and Affiliated Education for BMS

Like it? Share with your friends!

0
2 comments
MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

2 Comments

Ask Us On WhatsApp
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format