Question

Match the following types of costs with their correct examples:

Types of Cost	Examples
(a) Direct Material	1. Wages paid to quality inspectors
(b) Indirect Labour	2. Cloth used in dress making
(c) Indirect Material	3. Nails used in carpentry work
(d) Direct Labour	4. Salary of a factory manager

Options

• a - 2, b - 4, c - 3, d - 1

• a - 3, b - 1, c - 2, d - 4

• a - 4, b - 3, c - 2, d - 1

• a - 1, b - 2, c - 3, d - 4

Answer 1

a - 2, b - 4, c - 3, d - 1

Explanation:

Types of Cost	Examples
(a) Direct Material	2. Cloth used in dress making
(b) Indirect Labour	4. Salary of a factory manager
(c) Indirect Material	3. Nails used in carpentry work
(d) Direct Labour	1. Wages paid to quality inspectors