Question
 In the context of cost accounting, expenses are
classified into different categories based on their function within the business operations. Based on your understanding of these categories, identify which one includes expenses related to warehouse: Refer to the following information to answer the next 4 questions (Q15 to Q18) Overheads are indirect costs that cannot be directly traced to specific products or services but are necessary for the overall operations of a business. These costs include various types of expenses such as administration, production, selling, and distribution overheads. Each category of overheads plays a distinct role in the functioning of a business. Accurate classification and allocation of these overheads are crucial for effective cost accounting, enabling businesses to determine the true cost of their products and services and make informed financial decisions. Understanding how to allocate and manage these overheads helps in analyzing the profitability and efficiency of different segments of the business, ensuring better financial control and strategic planning. The process of cost allocation involves assigning costs to cost centers or cost units, ensuring that each segment of the business is charged with its relevant expenses. This helps in analyzing the profitability and efficiency of different segments of the business, ensuring better financial control and strategic planning. Overheads also impact financial accounting, as adjustments for under-absorption or over-absorption need to be made to reflect the actual costs incurred. Understanding how to manage these overheads aids in financial analysis, budgeting, and forecasting, ultimately contributing to the overall financial health and sustainability of the business.Solution
Warehouse expenses are categorized under distribution overheads because they are related to the logistics and management of inventory storage and handling before the products are delivered to customers. This classification helps in accurately allocating costs to the appropriate segment of the business operations.
Which of the following is not an output of an organization?
What will be the impact on Return on Equity (RoE) if cash is paid to the creditors?
Champion Ltd. define following data for calculating Current Ratio:
Current Assets Rs.20,00,000 ,
Inventories Rs.10,00,000 ,
Working Capital Rs.12, 00,000.
The credit facilit y availed from banks, that is typically used for financing the day-to-day operations of a company/firm is ___ ________
As per the priority sector lending (PSL) norms as revised in March 2025 , w hat is the revised loan limit for purchase /construction of housing in metro...
The size of the order for which both ordering and carrying cost are at minimum is known as:
A company earns profit of Rs.175000 in the first year of operations. It’s issued capital consists of 70,000 shares of Rs.10 each. If the market value ...
Under which of the following types of barriers to the effective communication can anger, frustration, pride etc. be categorized?
Warehouse expense is an example of:
The bonds which are issued outside the jurisdiction of one country and denominated in a currency different from the currency of the countries in which t...
