1: Scope of Management Accounting and Cost Classification Question 1-7:How would you classify the following in terms of Direct or Indirect materials? Question 8-37: How would you classify the following in terms of (A) Prime Cost,(B) Production Overhead,(C)Administration Overhead, (d)Selling Overhead and (E) Distribution Overhead? 1. Royalty per unit of Production * C * B * A * D * E 2. Lubricating Oil (factory) * C * B * E * D * A 3. Traveling expenses of Salesmen * E * D * A * C * B 4. Carriage Inwards of Raw Materials * D * B * E * A * C 5. Entertainment expenses of salesmen * E * A * B * D * C 6.Chief Accountant's Salary * E * C * D * A * B 7. Petrol used in running a motor car engine * Indirect Material * Direct Material Question 8-37: How would you classify the following in terms of (A) Prime Cost,(B) Production Overhead,(C) Administration Overhead, (d) Selling Overhead and (E) Distribution Overhead? 8. Repairs to Machinery * D * C * B * E * A 9. Boiler Fuel * E * A * B * C * D 10. Accomodation expenses of salesmen * B * E * C * A * D 11. Hire of computer in accounts office * B * A * C * D * E 12. Glass used in spectacles * Indirect Material * Direct Material 13. Depreciation (MAchinery) * B * D * C * A * E 14. Expenses on Factory Canteen * D * A * B * E * C 15. Toilet supplies (factory) * D * E * A * B * C 16. Toilet supplies (Office) * C * A * D * B * E 17. Paper used in printing a book. * Indirect Materal * Direct Material 18. Insurance (Finished stock) * C * D * A * E * B 19. Wages of Office boy in general office * E * D * A * B * C 20. Production Manager's Salary * B * E * A * C 21. Cloth used in making a dress * Indirect Material * Direct Material 22. Electric power in Factory * D * A * E * C * B 23. Water used in making ice-cream * Indirect Material * Direct Material 24. Assembler's Wages * B * D * C * A * E 25. Office Salaries * D * E * B * A * C 26. Wages of crane driver in factory * D * A * E * B 27. Raw Materials Used * D * A * E * C * B 28. Delivery Expenses * B * E * A * C * D 29. Bad Debts * B * E * D * A * C 30. Time-keeper's Wages * E * C * A * B * D 31. Water used in making ice * Indirect Materail * Direct Material 32. Wages of Store Clerk * B * E * A * D * C 33. Timber used in constructing a home * Indirect Material * Direct Material 34. Wages of crane driver in in haulage company * A * E * B * D * C 35. Advertising * B * C * A * E * D 36. Foremen's Salaries * C * E * B * A * D