Prime cost is one of the following
FINANCIAL
JAMB 2015
Prime cost is one of the following
- A. expenses which can be identified with an allocated to cost centers
- B. aggregate direct material cost, direct labour cost and variable direct expenses
- C. the cost taken into account in the production process whether direct or indirect
- D. the cost of commodities supply to an undertaking
Correct Answer: B. aggregate direct material cost, direct labour cost and variable direct expenses
Explanation
prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.
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