Page 89 - F2 - MA Integrated Workbook STUDENT 2018-19

Cost classification

Test your understanding 2

QRS is an office cleaning business which employs a team of part-time
cleaners who are paid an hourly wage. The business provides cleaning
services for a number of clients, ranging from small offices to high-street
shops and large open-plan offices.

In determining the cost of providing a cleaning service to a particular client,
which of the following costs would be a direct cost of cleaning that client’s
office and which would be an indirect cost?

Direct Indirect

The wages paid to the cleaner who is sent to the 
client’s premises

The cost of carpet shampoo used by the cleaner 

The salaries of QRS’s accounts clerks 

Rent of the premises where QRS stores its 
cleaning materials and equipment

Travelling expenses paid to the cleaner to reach 
the client’s premises

Advertising expenses incurred in attracting more 
clients to QRS business

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