Question

No.	Costs	Classification	Your answers
1	Factory cleaner’s wages	Direct or Indirect?
2	Power for factory machines	Fixed or Variable?
3	Interest on bank overdraft	Product or Period?
4	Direct materials used	Conversion or Prime?
5	Supervisor’s wages	Factory Overhead or Direct Labour
6	Overhead charged to production based on budget	Actual Overhead or Applied Overhead

No.	Information	Your answers: Management Accounting or Financial Accounting?
1	Income tax return
2	Budget variance analysis
3	Product costing
4	Balance Sheet
5	Management reports
6	Overhead cost allocation

Answer 1

Solution 1:

No	Costs	Classification
1	Factory cleaner's wages	Indirect
2	Power for factory machines	Variable
3	Interest on bank overdraft	Period
4	Direct matreials used	Prime
5	Supervisor's wages	Factory overhead
6	Overhead charged to production based on budget	Applied overhead

Solution 2:

No	Information	Classification
1	Income tax return	Financial accounting
2	Budget variance analysis	Management accounting
3	Product costing	Management accounting
4	Balance sheet	Financial accounting
5	Management reports	Management accounting
6	Overhead cost allocation	Management accounting