A-LevelAccountingCosting for materials and labour9706/12 · May/June 2016 · Q241 Mark
A manager is preparing a quotation for Job 88. A specialised technician is hired to work for this job only. He will use machinery that the company already owns. Which statement is correct about expenses for Job 88?
ABoth machinery depreciation and technician wage are direct.
BBoth machinery depreciation and technician wage are indirect.
CMachinery depreciation is direct and technician wage is indirect.
DMachinery depreciation is indirect and technician wage is direct.
✓ Correct answer
D: Machinery depreciation is indirect and technician wage is direct.
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