3.1 Choose the correct word(s) from those given in brackets - NSC Accounting - Question 3 - 2017 - Paper 1
Question 3
3.1 Choose the correct word(s) from those given in brackets. Write only the words next to the question number (3.1.1–3.1.4) in the ANSWER BOOK.
3.1.1 The wages of f... show full transcript
Worked Solution & Example Answer:3.1 Choose the correct word(s) from those given in brackets - NSC Accounting - Question 3 - 2017 - Paper 1
Step 1
3.1.1 The wages of factory cleaners are classified as (direct labour / factory overhead) cost.
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Answer
The wages of factory cleaners are classified as factory overhead cost. This is because factory cleaners' wages are essential for the overall maintenance of the production environment, falling under the overhead costs incurred in running the factory.
Step 2
3.1.2 Factory rent is a (fixed/variable) cost.
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Answer
Factory rent is a fixed cost. This is because it does not fluctuate with the level of output produced; the payment remains constant regardless of how much is being manufactured.
Step 3
3.1.3 Packing materials used are regarded as a/an (selling and distribution / administration) cost.
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Answer
Packing materials used are regarded as a/an selling and distribution cost. These costs are related to the preparation of products for sale and distribution to customers.
Step 4
3.1.4 Break-even point refers to the (minimum / maximum) number of units that must be produced and sold to cover all costs.
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Break-even point refers to the minimum number of units that must be produced and sold to cover all costs. Achieving this point means that total revenue equals total costs, resulting in no profit or loss.
