Answer to Question #307991 in Management for lydia

Question

for each cost below , indicate whether it is direct, indirect or period cost as well as whether it is fixed or variable

Salaries

factory workers

factory mangement

Accounting

Directors

Depreciation

Factory equipment

Buildings

Purchase from creditors

Raw material

Water and electricity

Factory

Storeroom

Office

Other

Cleaners (Office)(fixed rate as per contract)

Entertainment( amount is spend every year)

Exteral audit fees as per contract

Answer 1

Salaries- Fixed

factory workers- Variable

factory mangement- Fixed

Accounting-Fixed

Directors- Fixed

Depreciation-Fixed

Factory equipment-Fixed

Buildings-Fixed

Purchase from creditors

Raw material-Variable

Water and electricity- Variable

Factory- Fixed

Storeroom- Fixed

Office- Fixed

Other

Cleaners (Office)(fixed rate as per contract)- Fixed

Entertainment( amount is spend every year)- Fixed

Exteral audit fees as per contract- Fixed