alleryStart learning →Which cost is included in the cost of goods sold of a manufacturer?
AFactory workers' wages
BShowroom rent charges
COwner's own salary
DVan insurance premium
Answer & Solution
Correct answer: A. Factory workers' wages
Direct labour of those producing the goods is a production cost and so forms part of cost of goods sold.
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Net income is also calledCharging depreciation on fixed assets has what effect on net profit?Rs 36,000 rent for 12 months is received on 1 January. At the 31 March year end, unearned Investment interest of Rs 12,000 a year is received for nine months only. Accrued income aMachine costing Rs 2,00,000 is bought on 1 October; depreciation 15% a year on cost, year Current assets are Rs 4,80,000 and current liabilities Rs 3,10,000. Net current assets arePurchases Rs 4,00,000, purchase returns Rs 25,000, carriage inwards Rs 5,000. Net cost of Gross sales Rs 6,40,000 and sales returns Rs 15,000. Net sales are