The correct answer is D. Loss on sale of fixed assets.
Cost accounting is a branch of accounting that focuses on the measurement, accumulation, and assignment of costs to products and services. It is used to determine the profitability of products and services, as well as to make decisions about pricing, production, and inventory levels.
The costs that are included in cost accounting are those that are directly or indirectly related to the production of a product or service. Direct costs are those that can be easily traced to a specific product or service, such as the cost of materials and labor. Indirect costs are those that cannot be easily traced to a specific product or service, such as the cost of rent and utilities.
Loss on sale of fixed assets is not a cost that is directly or indirectly related to the production of a product or service. Therefore, it is not included in cost accounting.
Here is a brief explanation of each option:
- Direct material cost: The cost of the materials that are used to make a product.
- Factory overheads: The costs of running a factory, such as the cost of rent, utilities, and insurance.
- Selling expenses: The costs of selling a product, such as the cost of advertising and sales commissions.
- Loss on sale of fixed assets: The loss that is incurred when a fixed asset is sold for less than its book value.