Question

Match List - I with List - II:

• A. A-I, B-II, C-III, D-IV
• B. A-II, B-I, C-III, D-IV
• C. A-II, B-I, C-IV, D-III
• D. A-I, B-II, C-IV, D-III

Hint:

Logic Tip: Direct material becomes part of the product (cloth in dress making); indirect material and indirect expense only support production (machine stores, factory rent); supervisors' salary is indirect labour.

Answer 1

The Correct Option is C

Step 1: Understanding the Question:

• We must match the cost items in List - I with their descriptions in List - II.

Step 2: Detailed Explanation:

• A. Direct Material: material that becomes part of the product, such as cloth in dress making, so A matches II.
• B. Indirect Material: material used to run the factory but not part of the product, such as stores used for maintaining machines, so B matches I.
• C. Indirect Labour: wages of workers who do not work directly on the product, such as salary paid to foremen and supervisors, so C matches IV.
• D. Indirect Expense: overheads that cannot be traced to a product, such as factory rent, so D matches III.
• The correct matching is A-II, B-I, C-IV, D-III.

Step 3: Final Answer:
The correct option is (C) A-II, B-I, C-IV, D-III.