A firm has to pay a $0.50 per unit royalty to the inventor of a device which it manufactures and sells. How would the royalty charge be classified in the firm's accounts?
A、selling expense
B、direct expense
C、production overhead
D、administrative overhead
A、selling expense
B、direct expense
C、production overhead
D、administrative overhead
【参考答案及解析】
As the royalty relates to every unit produced, it is therefore classified as a direct expense.
As the royalty relates to every unit produced, it is therefore classified as a direct expense.