COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Direct material cost
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Works manager’s r salary
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Depreciation of machinery
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Chargeable expenses
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Detailed explanation-1: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.
Detailed explanation-2: -Examples of fixed overhead costs include: Rent of the production facility or corporate office. Salaries of plant managers and supervisors.
Detailed explanation-3: -Fixed costs include any number of expenses, including rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.
Detailed explanation-4: -The salary paid to the production manager in a factory is a fixed manufacturing overhead cost that is not related to the production volume within a relevant range for a given period.