Question

Prepare a table showing the basis of distribution of various expenses to department

Answer 1

...................... . .............

Answer 2

there are two types of expenses one is direct expense and indirect expense

direct expenses:- expenses which are accured in the time of manufacturing is called direct expenses

indirect expenses:- expenses which are in the time of sales is called indirect expenses

expenses                                              basis of distribution

• freight charges                             ratio of purchases
• carriage inwards                           "
• import duty                                    "
• discount received                            "
• commission                                   ratio of sales
• discount allowed                            "
• travelling                                        "
• bad debts                                       "
• advertisment                                   "
• power charges                               ratio of floor space
• rent and rates                                    "
• repairs                                                 "
• air conditions exp                               "
• depreciation                                     ratio of value of asset
• insurance premium                         ratio of subject matter
• labour welfare exp                            ratio of number of workers
• recreation exp                                        "
• canteen exp                                         "