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A company manufactures and retails clothing. You are required to group the costs which are listed below and numbered (1)-(20) into the following classifications (each
A company manufactures and retails clothing. You are required to group the costs which are listed below and numbered (1)-(20) into the following classifications (each cost is intended to belong to only one classification): (i) direct materials (ii) direct labour (iii) direct expenses (iv) indirect production overhead (v) research and development costs (vi) selling and distribution costs (vii) administration costs (viii) finance costs (1) Lubricant for sewing machines 1 (2) Floppy disks for general office computer (3) Maintenance contract for general office photocopying machine (4) Telephone rental plus metered calls (5) Interest on bank overdraft (6) Performing Rights Society charge for music broadcast throughout the factory (7) Market research undertaken prior to a new product launch (8) Wages of security guards for factory (9) Carriage on purchase of basic raw material (10) Royalty payable on number of units of product XY produced (11) Road fund licences for delivery vehicles (12) Parcels sent to customers (13) Cost of advertising products on television (14) Audit fees (15) Chief accountant's salary (16) Wages of operatives in the cutting department (17) Cost of painting advertising slogans on delivery vans (18) Wages of storekeepers in materials store
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