Match the group of List-I with those of List-II and choose the correct answer List-I List-II a. Direct wages 1. Factory expenditure b. Packing 2. Prime cost c. Depreciation 3. Sales cost d. Legal expenses 4. Office expenses

The correct answer is: A. a-1, b-2, c-3, d-4

Direct wages are the wages paid to the workers who are directly involved in the production of goods or services. They are included in the prime cost of a product.

Packing is the process of enclosing goods in a container for protection during transportation. It is a part of the factory expenditure.

Depreciation is the decrease in the value of an asset over time due to wear and tear. It is a non-cash expense that is included in the cost of goods sold.

Legal expenses are the costs incurred by a company in connection with legal matters. They are included in the office expenses.

Here is a brief explanation of each option:

• Option A: This option is correct because it matches the items in List-I with the items in List-II in a logical way. Direct wages are included in the prime cost, packing is a part of the factory expenditure, depreciation is a non-cash expense that is included in the cost of goods sold, and legal expenses are included in the office expenses.
• Option B: This option is incorrect because it matches direct wages with the factory expenditure. Direct wages are included in the prime cost, not the factory expenditure.
• Option C: This option is incorrect because it matches packing with the sales cost. Packing is a part of the factory expenditure, not the sales cost.
• Option D: This option is incorrect because it matches depreciation with the office expenses. Depreciation is a non-cash expense that is included in the cost of goods sold, not the office expenses.