English

In the running of a particular train, cost of railway station and railway staff are indirect costs.

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Question

In the running of a particular train, cost of railway station and railway staff are indirect costs.

Options

  • True

  • False

MCQ
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Solution

True

Explanation:

If the cost object is a particular train, expenses for the railway station and general railway staff cannot be directly traced to that single train; they are common overheads (indirect costs) allocated across services.

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Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 152]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 44. | Page 152
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