Exam BA2 Topic 1 Question 81 Discussion

A. Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.

B. Royalties paid on a per unit basis are an example of an indirect expense.

C. The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.

D. Rent paid for a factory in which several different products are produced is an example of an indirect expense.