Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A manager is drawing up a quotation for Job 88. A specialised technician is employed to carry out only this job. He will operate machinery already owned by the company. Which statement about the expenses for Job 88 is correct?

  • ABoth machinery depreciation and technician wage are direct.
  • BBoth machinery depreciation and technician wage are indirect.
  • CMachinery depreciation is direct and technician wage is indirect.
  • DMachinery depreciation is indirect and technician wage is direct.

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