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Question
It refers to the expenses incurred on those items which are not directly chargeable to production. Salaries of timekeeper, foremen and watchmen are examples of this cost. This cost is incurred for the concern as a whole rather than a particular product.
Options
Direct cost
Indirect cost
Selling cost
Advertising cost
Solution
Indirect cost
Explanation:
Indirect costs refer to expenses incurred on items not directly chargeable to production. Salaries of timekeepers, storekeepers, and foremen are examples of indirect costs.
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