The direct labor, salary outlays and direct material purchases are classified as ___________?
Correct answer: B. cash disbursements
- A. price disbursements
- B. cash disbursements
- C. budget disbursements
- D. goods disbursements
Explanation
Direct labour payments, salaries, and payments for direct materials are cash outflows, so they appear under cash disbursements in the cash budget. The word disbursement specifically refers to money paid out.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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