Question

1. Classify the costs according to the headings in the columns

COST CLASSIFICTION
	Cost element	Function	Product cost	Period cost	Cost behaviour
Direct material K120			X
Indirect material K50
Direct labour K180
Indirect labour K30
Administrative expenses K240
Marketing expenses K300
Research anddevelopment K200
Total

Answer 1

Cost Classification

Particulars	Cost Element	Function	Product Cost	Period Cost	Cost Behavior
1. Direct Materials K120	Material cost Direct expenses	Production cost	x		Variable
2. Indirect Material K50	Material cost Indirect overhead expenses	Production Cost	x		Semi variable cost
3. Direct Labour K180	Labor cost Direct Expenses	Production cost	x		Variable
4. Indirect Labour K30	Labour cost Indirect overhead Expenses	Production cost	x		Semi variable cost
5. Administrative expenses	Expenses	Administrative cost		x	Fixed
6. Marketing expenses	Expenses	Marketing cost		x	Fixed
7. Research and development	Expenses	Research and development cost		x	Fixed

All the best...