RECAP - Cost by element

What are materials costs?

• The costs of business employees

• The costs of purchasing goods to be resold

• The costs of purchases of raw materials

• The costs incurred by the organisation other than labour and materials

What are labour costs?

• The costs of business employees

• The costs of purchasing goods to be resold

• The costs of purchases of raw materials

• The costs incurred by the organisation other than labour and materials

What are overhead costs?

• The costs of business employees

• The costs of purchasing goods to be resold

• The costs of purchases of raw materials

• The costs incurred by the organisation other than labour and materials

Which element of cost includes rent, rates, heat and light, cleaning, advertising, etc.?

• Materials

• Labour

• Overheads

• None of the above

What is the cost of purchasing tea leaves for teabag production classified as?

• Materials

• Labour

• Overheads

• None of the above

What is the cost of rent for Lord Grey's head office classified as?

• Materials

• Labour

• Overheads

• None of the above

What is the cost of paper used in teabag production classified as?

• Materials

• Labour

• Overheads

• None of the above

What is the cost of wages for staff who make teabags classified as?

• Materials

• Labour

• Overheads

• None of the above

What is the cost of hotel reception staff hourly wages classified as?

• Materials

• Labour

• Overheads

• None of the above