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Prime cost is one of the following

Accounts - Principles of Accounts
JAMB 2015

Prime cost is one of the following

  • A. expenses which can be identified with an allocated to cost centers
  • B. aggregate direct material cost, direct labour cost and variable direct expenses
  • C. the cost taken into account in the production process whether direct or indirect
  • D. the cost of commodities supply to an undertaking
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Correct Answer: Option B
Explanation

prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.

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