The following is a list of costs incurred by a company that owns a single shop selling recycled electrical goods

Salespersons’ weekly wage

Pre-sale repairs to goods and safety checks of each item sold

Shop manager’s monthly salary

Donation to a local charity based on price achieved from each item sold

Depreciation on shop fittings

Shop cleaner’s weekly wage

Weekly advertising in local newspaper

Cost of collecting electrical goods from recycling centre

Theft insurance premium based on estimate in advance of the total value of electrical goods to be purchased and sold

 

A16  How many of these costs are fixed and how many are variable costs with respect to individual items of goods sold:

 

1. 0 fixed costs and 9 variable costs
2. 3 fixed costs and 6 variable costs
3. 5 fixed costs and 4 variable costs
4. 7 fixed costs and 2 variable costs

 

A17 How many of these costs are direct and how many are indirect costs with respect to individual items of goods sold:

 

1. 0 direct costs and 9 indirect costs
2. 2 direct costs and 7 indirect costs
3. 4 direct costs and 5 indirect costs
4. 6 direct costs and 3 indirect costs

Answer rating: 100% (QA)

Sr No Description of expenses Fixed Variable Cost Direct Indirect Cost Product Cost 1 Salespersons w... View the full answer