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  5. Which of the followi...

Which of the following is a component of prime cost?

Accounts - Principles of Accounts
JAMB 2025

Which of the following is a component of prime cost?

  • A. Factory rent
  • B. Depreciation
  • C. Factory electricity
  • D. Royalty
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Correct Answer: Option D
Explanation

Prime costs are expenses that can be directly charged to a specific unit of production. Royalty is a direct expense and is included in prime cost. All other options are classified as factory overhead.

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WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 127076
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 127076
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