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Module 1 Concept Test Solution

The document outlines a cost analysis categorizing various cost items as direct or indirect, product or period, and variable or fixed. It includes specific percentages for items like water and electricity, hairstylists, and cleaning costs. The analysis aims to provide clarity on the nature of each cost item for better financial management.

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sacey20.hb
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6 views

Module 1 Concept Test Solution

The document outlines a cost analysis categorizing various cost items as direct or indirect, product or period, and variable or fixed. It includes specific percentages for items like water and electricity, hairstylists, and cleaning costs. The analysis aims to provide clarity on the nature of each cost item for better financial management.

Uploaded by

sacey20.hb
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Concept Test 1 Suggested Solution

Cost Item Direct/Indirect Product/Period Variable/Fixed


Rental Indirect [1] Product [1] Fixed [1]
Water & Electricity 20% - Indirect [1/2] Product [1] 20% - Fixed [1/2]
80% - Direct [1/2] 80% - Variable [1/2]
Hairstylists Direct [1] Product [1/2] Variable [1/2]
Cleaning costs Indirect [1/2] Product/Period [1] Step fixed [1]
Other expenses Direct [1/2] Product [1/2] Variable [1/2]
Vehicle rental Indirect [1/2] Product/Period [1/2] Variable [1/2]
Depreciation Indirect [1/2] Product [1/2] Fixed [1/2]

Available 15
Maximum 15

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