Mydas Ltd Operates a Large Factory Which Manufactures Three Types

question 81

Multiple Choice

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

• A) The costs of wheels on the motorcycle
• B) The salary of the factory general manager
• C) The wages of the quality inspector whose job is to inspect each family car
• D) The windscreen wipers on a family car

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Definitions:

Sole Proprietorship

A business structure where a single individual owns, operates, and is responsible for the business, enjoying all profits and bearing all losses.

Limited Liability Corporation

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Non-Profit Organization

is an entity that operates for a collective, public, or social benefit rather than generating profits for owners or investors.

Professional Corporation

A type of corporate structure available to professionals like lawyers, doctors, and accountants, which offers certain legal and financial protections.