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
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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