English

Which of the following is overhead cost?

Advertisements
Advertisements

Question

Which of the following is overhead cost?

Options

  • Amount spent on raw material.

  • Salary of the finishing cost centre supervisor.

  • Wages paid to labour.

  • None of these.

MCQ
Advertisements

Solution

Salary of the finishing cost centre supervisor.

Explanation:

This is an overhead (indirect) cost because the supervisor’s salary cannot be directly traced to a specific product or unit. Raw materials and production wages are direct costs charged to the product.

shaalaa.com
Elements of Cost
  Is there an error in this question or solution?
Chapter 8: Fundamental Concepts of Cost - EXERCISES [Page 137]

APPEARS IN

Goyal Brothers Prakashan Commercial Applications [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 24. | Page 137
Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
EXERCISES | Q 16. | Page 150
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×