Elevation Ltd manufactures water tanks. Use a table such as illustrated below, to check the columns...
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Elevation Ltd manufactures water tanks. Use a table such as illustrated below, to check the columns for the following 5 costs items that most likely apply: Cost Product Period Justification Variable Fixed (a) (b) Direct Indirect X X Reason for direct product cost Reason for period cost X (a) Raw material used (b) Consumables used in manufacturing of water tanks (c) Salary of engineer doing research (d) Electricity cost for administration office building (e) Sales manager's commission X Justification Reason for variable cost Reason for fixed cost Elevation Ltd manufactures water tanks. Use a table such as illustrated below, to check the columns for the following 5 costs items that most likely apply: Cost Product Period Justification Variable Fixed (a) (b) Direct Indirect X X Reason for direct product cost Reason for period cost X (a) Raw material used (b) Consumables used in manufacturing of water tanks (c) Salary of engineer doing research (d) Electricity cost for administration office building (e) Sales manager's commission X Justification Reason for variable cost Reason for fixed cost
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Answer rating: 100% (QA)
ANSWER To determine the appropriate categorization for each cost item lets analyze them one by one a Raw material used This cost can be categorized as a direct product cost because it directly relates ... View the full answer
Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
Posted Date:
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