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Direct Expense

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Direct Expense

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • May 4, 2015 at 6:27 pm #244055
    AvatarAdnan
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    An engineering business has a department with a work force of eight engineers and one supervision. The department carries out small engineering jobs for business customers. Which of the following costs would be treated as a direct expense of a particular job for a customer?

    A. Supervision costs
    B. Cost of delivery of equipment to the customer
    C. Depreciation of engineering equipment
    D. Cost of engineer’s time on the job

    Please explain

    May 5, 2015 at 8:21 am #244130
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    Have you watched the free lectures (especially on cost classification and behaviour)?

    The only one of those costs that is specifically incurred and measurable for this particular job is the engineers time (D).

    May 9, 2015 at 8:27 pm #245021
    AvatarAdnan
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    Thank you sir!
    I started to watch those lectures
    thanks for referring those lectures really helpful

    May 10, 2015 at 8:32 am #245057
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    That’s great 🙂

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