Tick the box showing the correct classification for each cost mentioned below cost Fixed variable Semi variable Stepped fixed Factory manager’s salary Supervisor’s salary Direct labour Factory rent

Tick the box showing the correct classification for each cost mentioned below cost Fixed variable Semi variable Stepped fixed Factory manager’s salary Supervisor’s salary Direct labour Factory rent

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Tick the box showing the correct classification for each cost mentioned below

cost	Fixed	variable	Semi variable	Stepped fixed
Factory manager’s salary
Supervisor’s salary
Direct labour
Factory rent

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