Here is a list of typical types of expenses found in a manufacturing firm. These can be analysed as to whether they are direct materials, direct labour, direct expenses, indirect manufacturing costs, administration expenses, selling and distribution expenses, or finance expenses. In the right-hand column, write down what type of expense each item is.

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Cost 1 Raw materials for goods - identifiable with product made 2 Rent of factory buildings 3 Sales staff salaries 4 Wages of machine operators in factory 5 Wages of accounting machine operators in office 6 Depreciation of lathes in factory 7 Depreciation of typewriters in office 8 Depreciation of fixtures in sales showrooms 9 Supervisors' wages in factory 10 Royalty paid for each item manufactured 11 Works manager's salary: he reckons that he spends 3/4 of his time in the factory and ¹/4 in general administration of the firm 12 Raw materials incorporated in goods sold, but too difficult to trace to the goods being made 13 Depreciation of motor vehicles used for delivery of finished goods to customers Cost analysis 1 2 AWN 3 4 5 6889 ON 10 11 12 13