Classify the following items on the basis of traceability to the product: [April – 08]
(i) Cost of cotton in textile industry.
(ii) Carriage expenses for raw material.
(iii) Cost of Gunny bags in cement manufacturing unit.
(iv) Factory security staff wages.
Soln:
(i) Direct Cost
(ii) Direct Cost
(iii) Direct Cost
(iv) Indirect Cost
Classify items on the basis of traceability to the product
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