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 costs are directly traceable to product, while indirect costs support production generally.

Answer 1

The Correct Option is A

Step 1:
Direct materials are those materials that become a part of the finished product. Example: \[ \text{Wood used in furniture} \] Thus: \[ A \rightarrow I \]

Step 2:
Indirect materials assist production but do not become a major part of the product. Example: \[ \text{Lubricating oil} \] Thus: \[ B \rightarrow II \]

Step 3:

• Factory supervisor salary $\rightarrow$ Indirect Labour
• Factory rent $\rightarrow$ Indirect Expense Thus: \[ C \rightarrow III \] \[ D \rightarrow IV \]

Step 4:
Final matching: \[ A-I,\; B-II,\; C-III,\; D-IV \] Hence, the correct answer is: \[ \boxed{\text{(1) A-I, B-II, C-III, D-IV}} \]