The PC Works assembles custom computers from components supp

The PC Works assembles custom computers from components supplied by various manufacturers. T of the costs that are incurred at the company and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some Required For each cost, indicate whether it would most likely be classfied as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost

Solution

Ans. 4 d Selling cost.

The expenses that are related to sales or the expenses that affect sales, are included in selling cost.

Examples: Selling expenses, selling commission, salary to sales person, advertisement, sales tax etc.