Office and administrative expenses can be charged on the basis of _______.
A. material cost
B. labour cost
C. prime cost
D. factory cost
Answer: Option C
Solution(By Examveda Team)
Office and administrative expenses can be charged on the basis of prime cost. Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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