Question

Exercise A: Classification of manufacturing costs (Value: 8 points) Bike Inc. is a small company that builds bicycles on orders with customer specifications and carries out its operations in a small store that was a warehouse. The parts and parts of the bicycles are supplied by different manufacturers. Some of the costs incurred by the factory are presented below. Indicates the classification of costs in the following categories: direct materials (MD), direct labor (MOD), indirect costs (CI), administrative costs (CA) or sales costs (CV). • Rectangular Snip 1. Salary for employees who manufacture bicycles 2. Rental of the premises 3. Cost of bicycle frames in aluminum 4. Cost of ads in local magazines 5. Salary of the accountant 6. Purchase and manufacturing supervisor salary 7. Depreciation of the tools 8. Commissions paid to sellers

Answer 1

1	Salary for employees who manufacture bicycles	MOD
2	Rental of the premises	CI
3	Cost of bicycle frames in aluminum	MD
4	Cost of ads in local magazine	CV
5	Salary of the accountant	CA
6	Purchase and manufacturing supervisor salary	CA
7	Depreciation of the tools	CI
8	Commission paid to sellers	CV