Product costing: absorption costing

Activity 1

Instructions

A dress-making firm has the costs listed below. Study the list of costs and decide whether they are direct materials, direct labour or direct expense.

a)
b)
c)
d)
e)
f)
g)
h)
i)

 

 

Activity 2

Instructions

A house building firm has the costs listed below. Study the list of costs and decide whether they are direct materials, direct labour or direct expense.

a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
k)
l)
m)
n)
o)
p)
q)