Cost Classification by function-Example
Cost Classification by function-Example Manufacturing Company has the following costs: – Cost of direct materials………….. ……$200,000 – Direct labor…………………………………$500,000 – Factory overhead………………………….$100,000 – Office rental…………………………………$20,000 – Office salaries……………………………….$90,000 – Depreciation of office equipment……$9,000 – TV advertisement………………………….$10,000 – Interest expense…………………………….$5,000 – Delivery cost to customers………………$6,000 Required: You are required to classify above costs by function. Solution: Types Of Cost Costs Explanation
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