Question

7. Office overheads are recovered as a % of
a) Direct materials
b) Direct wages
c) Factory cost
d) None of the above​

Answer 1

Answer:

factory cost is the answer

Answer 2

Concept :

Since it's trying to connect fabricating above expenses for explicit items, they're in some cases alluded to as circuitous expenses. In view of a foreordained above retention rate, these expenses are added to the end result. Costs related with running a firm that aren't straightforwardly connected with a specific decent or administration are known as regulatory costs. Models incorporate the compensation and wages paid to regulatory staff, office lease, telephone and web access, travel and amusement, office supplies, promoting, and comparable expenses. Direct expenses could incorporate fixed costs regardless of whether they are regularly factor uses.

Explanation:

We have been given a multiple-choice question.

We have to write the correct option.

A cost that is straightforwardly attached to assembling a particular decent or offering a particular help and is remembered for above costs (i.e., cash spent by a firm on properties, hardware, and so on): Direct work expenses ought to be incorporated to coordinate above costs while computing costs.

Final answer:

Office overheads are recovered as a % of Direct materials

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