QUESTION 1

A. Classify the following costs of a franchise pizza chain either prime cost production overhead cost administrative cost or selling and distribution cost.

B. Cede Jati Enterprise is a local producer of teakwood furniture n East Malaysia. The business is organized into several departments such as purchasing, and production. marketing. storage and distribution. Each department has a manager responsible for managing their area. Department managers received monthly salaries while sales staff are paid monthly salaries plus a commission based on the sales revenue generated. The following are part of the costs of running the business

• Salaries of sales staff with a monthly allowance of RM1.000 and commission at RM2 for each unit sales
• Salaries of the department manager
• Teakwood limber
• Wages of carpenter based on unit produce
• Renting a machine for a customer order
• Insurance on building
• Insurance on inventory
• Advertisement
• Electricity
• Derxeuabon on office equipment