which of the following is a component of prime cost?

Assessment: WAEC SSCE - Financial Accounting - 2012 (Objective) Subject: Financial Accounting

Question 1 Report

which of the following is a component of prime cost?

Answer Details
The component of prime cost is the cost directly related to the production of goods or services. The prime cost consists of the direct cost of materials, labor cost, and other direct expenses incurred in the production process. Depreciation, royalty, and factory rent are not part of prime cost since they are indirect expenses. However, factory electricity is part of prime cost since it is a direct expense that is directly related to the production process.
Read lesson note on Nature And Significance Of Accounting (JAMB)
View Answer

Related Questions

1

Which of the following is a book of ordinary entry?
2

A balance sheet shows only
3

Trade discounts are given for
4

The process of entering transaction from one book to another is
5

A fixed assets fully written-down by a trader is now considered to be worth ₦5,000. The double entry required to reflect this is debit
6

Which of the following is not a source document?
7

When closing stock is overstated, it would reduce,
8

The objectively of accounting information is enable users to

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning