Question

5.
1.
2.
Depreciation of Director's laptop is treated as a part of:
what ?
Administration overheads
factory overheads
direct expenses
Research & development cost​

Answer 1

Answer:

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Answer 2

Answer:

Administration overheads

Explanation:

Depreciation of Director's laptop is treated as a part of Administration overheads.

• Overheads may be referred  as the indirect material, indirect labor and indirect expenses,
• or aggregate of indirect material, indirect labor and indirect expenses, which cannot be charged directly to specific cost center or cost units
• Administrative OH refers to all those indirect office and administration expenses.
• Examples are

1. salary of office staff. accountants, directors etc.
2. cost of planning and controlling of policies
3. office rent, light
4. depreciation of office building
5. postage
6. office stationery
7. lighting and heating of office
8. Telephone expenses. etc.

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