Mydas Ltd Operates a Large Factory Which Manufactures Three Types

question 63

Multiple Choice

Mydas Ltd operates a large factory which manufactures three types of motor vehicles, including family cars, sports cars and motorcycles. If the cost object is a motorcycle, which of the following is a direct cost?

• A) The costs of wheels on the motorcycle
• B) The salary of the factory general manager
• C) The salary of the factory quality inspector
• D) The windscreen wipers on a family car

---

Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, accounting for both income and capital gains.

Nominal Rate

The stated interest rate of a financial product, not accounting for inflation or compounding effects.

Compounded Quarterly

Refers to the method of applying interest to an existing principal amount and any accrued interest every quarter or three months.

Effective Yield

A measure of the return on an investment, taking into account the effect of compounding interest.