question accounting

5

A

few costs and measures of activity are listed below. (5 marks)

Required:

Fill the correct cost in the column mentioned below as per information which indicates whether the cost is Direct / Indirect /Fixed or Variable with respect to the possible measure of activity listed below.

Cost Description

Cost of direct material used to make tables and chairs in the office

Units produced

Cost of COVID vaccine produced in the KSA

Vaccine production

Cement/ steel /sand/ other material use to build a house/office

Office or home

Electricity cost for lulu hypermarket for selling products or production /producer

Selling product to the people

Deprecation cost for lulu hypermarket on all kinds of fixed assets or any constructions

A particular location or hypermarket

Buying a photocopier for the production unit

For the office use

Paying any kind of incentive or commission for salesperson in MNCs

Paying in SR or $

Paying salary to the driver at home for working on the monthly basis

Working for whole family

Internet and water bills paid for the warehouse on the accrual basis

Monthly accrual payment

Transporting to the market for the sale

	Possible measure of activity / cost object	Fixed or Variable cost / Direct / or Indirect cost




Driver’s salary paid for the finished goods

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