In manufacturing account, wages of machine operators are classified as

Accounts - Principles of Accounts

WAEC 2024

A. prime cost.
B. factory overheads.
C. work-in- progress.
D. administrative overheads.

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Correct Answer: Option A

Explanation

Wages of machines operators is a direct cost because in most cases, he will be remunerated based on the quantity produced. This has a direct relationship with output. Thus, it is part of prime cost and prime cost are direct cost in production.

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In manufacturing account, wages of machine operators are classified as

Correct Answer: Option A

Explanation

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