Practice questions:
Indicate which of the following costs that are incurred in a manufacturing company are production costs, selling and distribution costs or administration costs:
• Motor vehicles' licences
• Depreciation of factory machinery
• Commission paid to sales team
• Salary of finance director's secretary
• Salary of factory security guard
• Fees to advertising agency
• Buildings' insurance
• Lubricants for factory machinery
• Depreciation of fork lift truck
• Accounting software
• Bonuses for factory staff
• Training course for clerical staff