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Question 1: A company manufactures and retails clothing. You are required to group the costs which are listed below and numbered 1 to 20 into the following classifications (each cost is intended to belong to only one classification MATERIAL PREPARED BY ICWAI FOR J.A.O. (CIVIL) EXAMINATION 19 Basics of Cost Accounting (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 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 purchases 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 19. Wages of fork lift truck drivers who handle raw materials 20. Developing a new product in the laboratory Answer : (i) Direct materials 9 (ii) Direct labour 16 (iii) Direct expenses 10 (iv) Indirect production overhead 1,6,8,18,19 (v) Research and development costs 20 (vi) Selling and distribution costs 7, 11, 12, 13, 17 (vii) Administration costs 2, 3, 4, 14, 15
A financial market is a market in which people and entities can trade financial securities, commodities, and other items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers, including households, firms, and government agencies, in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy
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