MEM 7

COST AND MANAGEMENT ACCOUNTING

Exercise 1

“classification of costs”

BY
Mohamed Elnazeer Abdelrhman.
 1. Fill up the table below by putting (×) under each of the following cost concepts and
classifications. Notice that a cost might be put under more one classification:
2.
Cost Variable Fixed Direct Direct Manufacturing Period Inventoriable
Cost cost materials labour overhead cost cost

1. Plant rental
× × ×
2. Materials cost
× × ×
3. Salary of workers’
supervisor
× × ×
4. Salaries of product
lines’ workers
× × ×
5. Plant equipment
rental
× × ×
6. Depreciation of plant
buildings
× × ×
7. Advertising expenses
× ×
8. Transportation cost
× ×
9. Insurance expenses
for administration’s
× ×
building
10. Lubricants cost for
plant equipment
× ×