COST ACCOUNTING
THE MASTER BUDGET
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Cost of interest the company pays on loans.
|
|
|
These are the costs of personnel who are not directly involved with the transformation of the raw material into a finished product, but whose responsibilities are to support, supervise or direct
|
|
|
These are the costs of materials necessary for production, but which are not part of the finished product, or if they are, their cost is insignificant in relation to the total cost.
|
|
|
These are the costs incurred in the management, planning, control or operations of the company.
|
Detailed explanation-1: -Administrative expenses refer to the costs incurred by a company or organization that include, but are not limited to, the salaries and benefits of the administrative workers within the company or organization, as well as rent and managerial compensation.
Detailed explanation-2: -Lesson Summary. Administrative expenses are costs related to the general administration of the business and do not relate to any function like production and sales. This can include things such as office supplies, professional fees, executive salaries, and employee salaries.
Detailed explanation-3: -Examples of General and Administrative Expenses Building rent. Consulting expenses. Corporate management wages and benefits (such as for the chief executive officer and support staff) Depreciation on office equipment.
Detailed explanation-4: -Administrative Expenses can be said as the cost incurred by a business organization that is not directly related to manufacturing, production, or sale of goods or services provided but are indirect costs necessary for administering business to ensure the smooth running of business operations.