Which of the following would be considered to be direct costs? Select TWO that apply:
A.
Production materials
B.
Head office salaries
C.
Company car depreciation
D.
Manufacturing staff wages
E.
Buildings insurance
The Answer Is:
A, D
This question includes an explanation.
Explanation:
Detailed Explanation:
A (Production materials): These are directly tied to the production of goods and are variable costs.
D (Manufacturing staff wages): Labour directly involved in the production process is a direct cost.
Indirect costs like salaries, depreciation, and insurance are related to overheads and not directly tied to production. Reference: CIPS Level 4, Cost Structures.
L4M2 PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"