Classify the following expenses as direct (D) and indirect (I) — (i) Royalties charged as a rate per unit (ii) Cost of making a design, pattern for a specific job (iii) Salesman's commission (iv) Power, fuel, lighting of

CS Executive · Cost and Management Accounting · PYQS · June 2016
Classify the following expenses as direct (D) and indirect (I) — (i) Royalties charged as a rate per unit (ii) Cost of making a design, pattern for a specific job (iii) Salesman's commission (iv) Power, fuel, lighting of factory and office. Select the correct answer using the codes given below
(A) (D) (D) (I) (I)
(B) (D) (D) (I) (D)
(C) (D) (D) (D) (D)
(D) (D) (D) (D) (I)

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A), (D). Official source note: Both the options (A and D) are correct.

Topics: Cost Concepts

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