Payment for the monthly bills of Electricity and water for your operations are a part of which Costing type?1 puntoDirect CostIndirect CostMaterial CostStaff CostI-clear ang pinili
Question
Payment for the monthly bills of Electricity and water for your operations are a part of which Costing type?1 puntoDirect CostIndirect CostMaterial CostStaff CostI-clear ang pinili
Solution
The payment for the monthly bills of Electricity and water for your operations are a part of Indirect Cost.
Here's why:
-
Direct Costs: These are costs that can be directly attributed to producing a specific product or service. For example, the cost of raw materials or the labor cost for workers on the production line.
-
Indirect Costs: These are costs that cannot be directly linked to a specific product or service. They are often referred to as overhead costs. Examples include rent, utilities (like your electricity and water bills), and administrative salaries.
-
Material Costs: These are the costs of all the materials used in the direct production of goods.
-
Staff Costs: These are the costs associated with employing staff such as salaries, benefits, and payroll taxes.
So, the costs of utilities like electricity and water used in your operations would be classified as Indirect Costs because they support the production process but cannot be linked to a specific product or service.
Similar Questions
Delivery truck rentals are a part of which Costing type?1 puntoDirect CostIndirect CostStaff CostMaterial CostI-clear ang pinili
Expenditures for acquisition of raw materials for your products are a part of which Costing type?1 puntoDirect CostIndirect CostStaff CostMaterial Cost
Which three of the following items are examples of direct costs for your project?1 pointWages and salaries of employees and contractors Staff trainingMaterials costsUtilitiesGeneral office equipment
An electricity generating company should adopt. (विद्युत उत्पादित करने वाली कम्पनी को निम्न में से कौन-सी लागत विधि अपनानी चाहिए?)a.Unit Costing (इकाई लागत विधि)b.Process Costing (प्रक्रिया लागत विधि)c.Operating Costing (परिचालन लागत विधि)d.Contract Costing (ठेका लागत विधि)
Fill in the Blank QuestionFill in the blank question.In order for a service provider to use activity-based costing, they should classify costs by level.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.