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Commerce · Q589

Costing

Graduate and Post Graduate · Commerce · question 589

Q589

Direct labour and salary outlays direct material purchases, which are classified as

A.
price disbursements
B.
cash disbursements
Answer
C.
budget disbursements
D.
goods disbursements

Answer: Option B

Solution

Answer: Option B
Solution:
Direct labour and salary outlays direct material purchases, which are classified as cash disbursements. Cash disbursements, also called cash payments, in accounting refer to payments made by a company during a specified period, such as quarter or year.