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Managerial accounting plays an important role in analyzing expenses and supporting decision making in an organization. The given data shows different categories of main expenses such as cost of materials, direct labour wages, factory overheads, distribution expenses, administration expenses, selling expenses and profit. These expenses together help management understand the cost structure of production and selling activities. Proper classification of these expenses allows managers to plan budgets, control costs and improve efficiency. The cost of materials and direct labour wages are known as prime costs. In the given data, cost of materials is 1,20,000 and direct labour ________ ____ _______ __________ _______ ______ ________ ___.
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