HOME WORKCOST ACCOUNTING- COST CLASSIFICATIONRequired: Read each of the following costs (1-58) items and classify cost as Factory Overhead, Office and AdministrationOverhead, Selling & Distribution OverheadCost ItemsClassification1. Advertising Expenses2. Bad debtsBank Charges.4. Buying and store-keeping expenses5. Carriage inward on purchased materials6. Carriage outward7. Consumable stores and all forms of indirect material (i.e., materialthat cannot be traced as part of the finished product, such as oilsand greases, small tools, cleaning materials, and minor spare partsfor repairs)3.8. Contribution to social security schemes, educational schemes, andold-age pension contributions9. Cost of dusters, brushes etc. for cleaning.10. Cost of oil, grease, spare parts, etc. used in maintaining deliveryvans11. Cost of packing and packages12. cost of printing and stationery used in marketing13. Depreciation14. Depreciation of factory plant and machinery and buildings15. Depreciation of delivery vans16. Depreciation of office buildings, equipments etc.17. Expenses for sales office 18. Expenses of service departments (e.g., boiler room, electricitysupply, water supply, inspections, and tool room)19. Expenses on branch establishment20. Expenses related to office operation21. Factory expenses (e.g., rent, rates, insurance, water, heat, andelectricity)22. Factory lighting23. Factory maintenance (e.g., cleaning, servicing, repairs, oiling, andgreasing)24. Factory rent and rates, property tax, and so on25. Factory transport expenses26. Fees for directors (e.g., sales director)27. Godown Expenses28. Indirect materials and materials of small value29. Insurance of factory premises, plant, and machinery30. Legal Charges.31. Mailing cost of literature, catalogs, price lists, offer letters, etc32. Normal losses of time and materials33. Office Insurance, heating, cleaning, etc.34. Office Rent, Rates and Taxes.35. Other transport charges36. Power, oil, and gas expenses37. Printing and Stationery used in the office.38. Rent, insurance, etc. of the godown39. Repair and maintenance expenses40. Repairs and maintenance of office building, etc.41. Running cost of delivery vans42. Salaries and allowances for work manager and supervisory staffUTAS-Ibri_Laly_AY2021-22-sem1-BAAC210143. Salaries and allowances of a legal adviser, his staff and other alliedexpenses.Other statutory expenses, e.g. fees to auditors, salary andallowances to internal auditors etc.44. Salaries and allowances of Public Relation Officer and his staff.45. Salaries and allowances or fees of director, managers, managerialstaff, accounts staff, secretary and the staff and all those who areconnected with the office.46. Salaries, commission, allowances, etc. of technical representatives,sales executives, etc.sales staff, including sales organizers,47. Salaries, commissions, etc.salesmen, etc.48. Showroom rent49. Stationery, telephone, and clerical salaries.50. Time-keeping expenses51. Trade Subscription.52. Travel and entertainment expenses53. Wages and salaries of persons engaged in the factory (e.g., foremen,supervisors, maintenance staff, factory administrative or clerical staff,testers, and examiners)54. Wages of dispatch clerks55. Wages of indirect workers (e.g., repairmen, labor used on cleaningshop floor, men employed in moving work-in-progress and financialgoods)56. Wages of packers57. Wages of van drivers58. Workers welfare, canteen expenses, medical charges, andcompensation

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Cost classification refers to separation of the expenses group into various categories and this…