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Q26
All of the following may be a cost objects except:
A a cost centre
B a customer
C a manager
D a product
-> I think the answer must be “B” because a customer is a revenue object.Q38 A company manufactures and sells toys and incurs the following three costs:
(i) Rental of the finished goods warehouse
(ii) Depreciation of its own fleet of delivery vehicles
(ii) Commission paid to sales staff
Which of these are classified as distribution costs?
-> In this question my confusion is why commission paid to sales staff is not distribution cost?I do not have the Kaplan kit.
However,
Q26 A customer can be a cost object because there are costs involved in servicing the customer. (We don’t refer to anything as a revenue object)
Q28 Commission paid to sales staff is a selling cost. Distribution is another word for delivery.
Thank you sir,
Q26 Cost is associated with a cost center and product as well. so, a manager is not a cost center but how?Q38 Rental of the finished goods warehouse is distribution cost but how sir?
Q26 A cost centre is an ‘area’ where costs are gathered and incurred. A cost object is when the costs in the cost centre are ‘spread’ over the objects.
Q38 Because it is a stop on the way of being delivered to the customer.
I do suggest that you watch the free lectures on all of this 🙂
sir, i have watched the lectures and this is why i am very much comfortable in solving the exam kit. your lectures has helped me a lot.
Q26 Why a manager is not a cost center?
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