alleryStart learning →Direct costs may be
AOnly variable in nature
BOnly semi-variable
COnly fixed in nature
DEither fixed or variable
Answer & Solution
Correct answer: D. Either fixed or variable
Traceability, not behaviour, makes a cost direct, so it can be fixed or variable.
Keep practising Direct Costs
Browse all Direct Costs questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Materials 30,000, labour 18,000, royalty 6,000, head office rent 9,000. Direct cost?Royalty is Rs 3 per unit on 4,000 units. Direct expenses amount toA machine costing 12 is improved at 20 and sold for 45. What is the profit?Two units cost Rs 10 each and two cost Rs 12 each. Two are sold; FIFO cost?Factory burden means overhead incurred at theOverhead per labour hour added to labour cost is aA gap between actual and standard material or labour cost is recorded asCOGS includes raw material costs together with