PART AClassify each cost below as being either variable (VC) or fixed (FC) with respect to the number ofunits 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 showthe proper classification of each cost.CostCostClassificationBehaviour(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.

The costs that changes with the level of production are said to be variable costs and the costs that…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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