Which of the following statements is valid?

Assume that a unit of output is the cost object.

Which of the following statements is valid?
A . Royalties paid on per unit basis are an example of an indirect expense.
B . Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.
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.

View Answer

Answer: C

Explanation:

Reference: https://www.acowtancy.com/textbook/acca-ma/a3-cost-classification/cost-objects-cost-units-and-cost-centres-/notes