Question：A firm has to pay a 20c per unit royalty to the inventor of a device which it manufactures and sells.
　　How would the royalty charge be classified in the firm's accounts?
　　A. Selling expense
　　B. Production overhead
　　C. Administrative overhead
　　D. Direct expense
　　The correct answer is: Direct expense
　　解析：The royalty cost can be traced in full to the product, ie it has been incurred as a direct consequence of making the product. It is therefore a direct expense.
　　Selling expense, production overhead and administrative overhead are all overheads or indirect costs which cannot be traced directly and in full to the product.