Classify the following items of expenses by functions and variability: S. No. Item Function Variability/ Behaviour (i) Consumable Store (ii) General…
CA Intermediate · Cost and Management Accounting · PYQS · January 2026
Classify the following items of expenses by functions and variability: S. No. Item Function Variability/ Behaviour (i) Consumable Store (ii) General Manager's salary (iii) Delivery van expenses (iv) Compensation (fixed salary plus commission on sales) (v) Rent of finished goods warehouse
Suggested Answer and Working Notes:
Classification of Expenses by Function and Variability S. No. Item Function Variability / Behaviour (i) Consumable stores Factory/Production/ manufacturing overhead Variable (ii) General Manager's salary Administration Fixed (iii) Delivery van expenses Selling & Distribution/ Distribution Semi-variable/ Variable (iv) Compensation (fixed salary plus commission on sales) Selling / Selling & Distribution Semi-variable (v) Rent of finished goods warehouse Selling & Distribution/ Distribution Fixed
Topics: Overheads - Absorption Costing Method
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