Which of the following is not part of prime cost of production?

Accounts - Principles of Accounts

JAMB 2025

A. depreciation of factory equipment
B. direct expenses
C. cost raw materials
D. carriage on raw materials

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Correct Answer: Option A

Explanation

Prime cost of production consists of direct costs such as raw materials, direct labour, and other direct expenses. Depreciation of factory equipment is an indirect cost and therefore not included in prime cost.

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Which of the following is not part of prime cost of production?

Correct Answer: Option A

Explanation

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