PART A Classify each cost below as being either variable (VC) or fixed (FC) with respect to the number of units produced or sold. Also classify each cost as either a direct material (DM), a direct labour (DL), production overheads (OH) or a selling and administrative (SA) cost. Magnitos Factory produces ice cream. Write your answers in the appropriate columns to show the proper classification of each cost. Cost Behaviour Cost Classification (VC or FC) (DM/DL/OH/SA) 1. Depreciation of delivery van. 2. Cost of milk in making ice-cream. 3. Lubricants for machineries. 4. Wages of operatives in cooling department. 5. Insurance for factory building. 6. Rent of finished goods warehouse. 7. Electricity cost at factory. 8. Salary of receptionist at regional office. 9. Commission paid to salesman. 10. Factory manager's salary.
PART A Classify each cost below as being either variable (VC) or fixed (FC) with respect to the number of units produced or sold. Also classify each cost as either a direct material (DM), a direct labour (DL), production overheads (OH) or a selling and administrative (SA) cost. Magnitos Factory produces ice cream. Write your answers in the appropriate columns to show the proper classification of each cost. Cost Behaviour Cost Classification (VC or FC) (DM/DL/OH/SA) 1. Depreciation of delivery van. 2. Cost of milk in making ice-cream. 3. Lubricants for machineries. 4. Wages of operatives in cooling department. 5. Insurance for factory building. 6. Rent of finished goods warehouse. 7. Electricity cost at factory. 8. Salary of receptionist at regional office. 9. Commission paid to salesman. 10. Factory manager's salary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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