Question: Differentiate fixed cost and variable cost. Give TWO (2) examples for each cost. (8marks)

Pacific Ocean Sdn. Bhd

Question 4 Pacific Ocean Sdn. Bhd. Statement of Comprehensive Income for the Year Ended 31 December 2021 Sales Less: Cost of Goods Sold Direct materials Direct labour Manufacturing overheads Gross profit Less: Fixed costs Selling and distribution costs Administrative costs Net Profit RM 100,000 75,000 25 000 25,000 20,000 300,000 (200,000) 100,000 (45,000)