Question

Case Studies based on Costing, Accounting and Capital Budgeting

CASE STUDY 1:

A company manufactures and retails clothing. You are required to group the costs which are listed below. (Each cost is intended to belong to only one classification).

A) Direct Materials

B) Direct Labour

C) Direct Expenses

D) Production Overhead

E) Selling and Distribution Costs

F) Administration Costs

1) Telephone rental plus metered calls

2) Wages of security guards for factory

3) Parcels sent to customers

4) Wages of operatives in cutting department

5) Wages of storekeeper in material store

6) Chief Accountant Salary

7) Cost of painting advertising slogans in delivery vans

8) Auditor's fee

9) Cost of advertising on television

10) Lubricants for sewing machines

11) Floppy disks for general office computer

12) Maintenance contract for office photo copying machine

13) Market research undertaken prior to new product launch

14) Carriage on purchase of raw materials

15) Royalty paid on number of units of a particular product produced

16) Road licences for delivery vehicles​

Answer 1

Answer:

the samples answer is to provide the best way is 15