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The prime cost is the total of the?

Accounts - Principles of Accounts
JAMB 2010

The prime cost is the total of the?

  • A. production cost + selling expenses
  • B. direct material + direct labour + direct expenses
  • C. direct material + work overhead expenses
  • D. administrative expenses + selling + distribution expenses
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Correct Answer: Option B
Explanation

The prime cost is the summation of all direct expenses and direct materials used in production. Its simply direct cost incurred during production

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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