Over which of the following is the manager of a profit centre likely t

A company makes chairs and tables. Which of the following items would be treated as an indirect cost?

A

Wood used to make a chair

B

Metal used for the legs of a chair

C

Fabric to cover the seat of a chair

D

The salary of the sales director of the company

A manufacturing firm is very busy and overtime is being worked. How would the amount of overtime premium contained in direct wages normally be classed?

A

Part of prime cost

B

Factory overheads

C

Direct labour costs

D

Administrative overheads

Which of the following would be classed as indirect labour?

A

Assembly workers in a company manufacturing televisions

B

A stores assistant in a factory store

C

Plasterers in a construction company

D

A consultant in a firm of management consultants

A firm has to pay a 20c per unit royalty to the inventor of a device which it manufactures and sells. How would the royalty charge be classified in the firm's accounts?

A

Selling expense

B

Direct expense

C

Production overhead

D

Administrative overhead

When gathering information on a potential client you can use both internal sources of information and external sources of information.Which TWO of the following would be classified as internally generated information?

A

Supplier references

B

Credit reference agency reports

C

Sales information

D

Ratio calculations