Assignment On Distribution of Direct, Indirect, Fixed & Variable Expenses

Prepared By,

Parth V. Purohit

AMA PGP-IBM (2010-2012)

Various Businesses:

Construction Company

Furniture Business

Provision Store

Photocopy Center

Sweets’ Shop

Cloth's Shop

Crackers Shop

Electronic Gadget Center

Hotels

Petrol & Gas Distributors

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1) Construction Company:

Direct Labor Expenses Raw material Introduced-

Purchase Carriage/Transportation Cost Freight Misc. Factory cost

Indirect Salary to Manager Commission Electricity & Telephone

Bill Depreciation on machinery Bank Charges

Fixed Salary to Permanent Employees Dep. on assets and Machinery Minimum Rental of Electricity

and Telephone Insurance Premium Office Rent

Variable

Electricity Raw material Consumed Labor Charges Commission Wages to temporary Workers

2) Furniture Business:

Direct Wood (R.Mat.) Freight Carriage/Transportation Cost Purchase discount Inventory Shortfall

Indirect Interest on bank loan Commission Communication Expenses Insurance Expenses Depreciation on cutting

machinery

Fixed Variable

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Salary to Permanent Employees Dep. on furniture Regular Maintenance Expn.. Insurance Premium of assets Office Rent

Electricity Raw material Consumed Labor Charges Commission Wages to temporary Workers

3) Provision Store:

Direct Purchase of Misc. Items Samples to the Customer Carriage/Transportation Cost Purchase discount Misc. Expenses on Purchase

Indirect Bank Charges Commission Electricity Expenses Insurance Of Goods Advertisement Expn.

Fixed Store Rent Salary to Workers Advertisement Expense Bank installment Insurance Premium

Variable Carriage & Transportation Expn. Purchase Expenses Labor Charges Commission to Distributor Advertisement Expn.

4) Photocopy Center:

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Direct Purchase of Papers Discount to Big Customers Carriage/Transportation Cost Inventory Shortfall Misc. Shop Expn.

Indirect Internet Charges Audit Expenses Financial Expn. Insurance of Machines Advertisement Expn.

Fixed Shop Rent Employee Salary Advertisement Expense(Regular) Bank Charges Insurance Of Machines

Variable Govt. Duties Tax on income of Shop Labor Charges Advertisement Expn. Misc. Expenses

5) Sweets Shop:

Direct Purchase of Milk & Sweets Transportation Cost Wage Expn. Misc. Expenses on Purchase Discount to the Customer

Indirect Order Charges Insurance of Vehical Electricity & Gas Expenses Audit Expn. Advertisement Expn.

Fixed Office and Store Rent

Variable Purchase Expenses

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Salary to manager Rental of light and telephone Bank charges Insurance Premium

Labor Charges Advertisement Expn. Carriage & Transportation Expn. Free Samples to customer

6) Cloths’ factory:

Direct Purchase of Material Gift to customers as offer Carriage and Fright Purchase discount Wages to worker

Indirect Bank Loan Salary to Employees & manager Communication charges Insurance Of Goods Advertisement Expn.

Fixed Salary to Workers Depreciation on Machinery Bank loan interest Insurance of Storage Factory & Store Rent

Variable Tax and Duties Purchase Discount Labor Expenses Advertisement Expn. Labor charges

7) Cracker stall:

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Direct Purchase of Crackers Discount on purchase Transportation Expenses Wages Purchase Expn.

Indirect Rent of Stall Salary to salesman Insurance of stall Advertisement Expn. Electricity Expenses

Fixed Advertisement Expense Insurance Of Stall Stall rent for a period Deposit of stall

Variable Duties on sells Tax on income Labor Charges Misc. Expenses

8) Electronic Gadget Center :

Direct Purchase of Electronic Items Cost of hiring goods Carriage and Fright Sundry Expn. on Purchase Discount to the Customer

Indirect Cost of Order Insurance of Gadget Electricity Expenses Financial Expn. Advertisement Expn.

Fixed Show-Room Rent Salary to Manager

Variable Commission to salesman Wages to workers

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Advertisement Expenses Bank Loan installment Insurance Premium of Goods

Advertisement on festivals Transportation Expn. Gifts

9) Hotels and Restaurant:

Direct Purchase of Vegetables Special offer & Discounts Transportation of Vegetables Wages to waiters Inventory shortfall

Indirect Bank Cheque Clearance Advertisement Expn. Salary to Manager Electricity Expenses Insurance Expn. Of Hotels

Fixed Salary to Manager Depreciation on Ele. items Interest on loan Insurance against Theft Go-Down Rent

Variable Sundary Discount Advertisement Expn. Tax and Vat Duties Financial Expn.

10) Petrol and Gas Distributor:

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Direct Purchase of Petrol and Gas Wages to Employees Carriage/Transportation Cost Freight and Octroy Loss due to natural causes

Indirect Electricity & Telephone

Bill Salary to Manager Depreciation on machinery Bank Charges against clearing

Fixed Salary to Manager Dep. on assets and Machinery Minimum Rental of Electricity

and Telephone Insurance Premium Office & Pump Rent

Variable

Electricity Commission Wages to temporary Workers Tax on import Duties paid to Govt.

: Thank You :

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