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A company makes wooden toys. Classify each of the following costs into Direct or Indirect cost. 1. Wood, purchased to make toys 2. Salary paid
A company makes wooden toys. Classify each of the following costs into Direct or Indirect cost. 1. Wood, purchased to make toys 2. Salary paid to the manager of the wood cutting department 3. Paint and varnish, purchased for finishing the assembled toys. 4. Petrol for a delivery lorry belonging to the company, and used to deliver finished toys to customers. 5. Power for operating wood-cutting machinery 6. Bank charges 7. Telephone rental and charges 8. Advertisement in a trade journal
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