📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    Prime cost refers to which among the following?

    A Direct Cost + Indirect Cost Correct Answer Incorrect Answer
    B All the overheads Correct Answer Incorrect Answer
    C Direct Material + Indirect Material Correct Answer Incorrect Answer
    D Direct Labour + Indirect Labour Correct Answer Incorrect Answer
    E Direct Material + Direct Labour + Direct Expenses Correct Answer Incorrect Answer

    Solution

    Prime costs are the sum of direct costs incurred during the manufacture of a product. These costs comprise Direct Material, Direct Labour and Direct Expenses. Prime cost does not include indirect expenses like factory rent or supervisor’s salary.

    Practice Next
    More Alternate Sources of Finance Questions
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call