Cost classification: The expenses incurred in the repairing and maintenance is the cost which should be classified in terms of direct material, direct labor, and overhead as to eliminate any extra cost which is charged separately even after including in such heads. The response of A to the bill raised by R and any incorrect cost shown on bill and arguments against the same.

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Chapter 10, Problem 10.3.1C

To determine

Concept introduction:

Cost classification:

The expenses incurred in the repairing and maintenance is the cost which should be classified in terms of direct material, direct labor, and overhead as to eliminate any extra cost which is charged separately even after including in such heads.

The response of A to the bill raised by R and any incorrect cost shown on bill and arguments against the same.

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