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  4. JAMB 2024
  5. Prime cost consist o...

Prime cost consist of direct material and ___ cost

Accounts - Principles of Accounts
JAMB 2024

Prime cost consist of direct material and ___ cost

  • A. overhead
  • B. direct
  • C. indirect
  • D. factory
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Correct Answer: Option B
Explanation

Prime cost refers to the direct costs associated with producing a good. These are costs that can be easily traced and directly linked to each unit of production. It consists of direct materials, direct labour and direct cost.

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