alleryStart learning →Royalty is Rs 3 per unit on 4,000 units. Direct expenses amount to
ARs 3,000
BRs 12,000
CRs 1,333
DRs 7,000
Answer & Solution
Correct answer: B. Rs 12,000
A per-unit royalty is a direct expense, and 3 x 4,000 = 12,000.
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?A 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 withCosts incurred only if operations are shut down are