The sum of direct cost in a manufacturing account is

Assessment: WAEC SSCE - Financial Accounting - 2014 (Objective) Subject: Financial Accounting

Question 1 Report

The sum of direct cost in a manufacturing account is

Answer Details
The correct answer is "prime cost". Direct costs are costs that can be specifically identified with a particular product or service. In a manufacturing account, direct costs are those costs that can be directly attributed to the production of goods, such as the cost of raw materials, direct labor costs, and direct expenses. The sum of these direct costs is known as the "prime cost". Therefore, the sum of direct cost in a manufacturing account is referred to as prime cost.
Read lesson note on Manufacturing Accounts (WAEC)
Read lesson note on Accounts Of Not-for-profit-making Organizations (JAMB)
Read lesson note on Partnership Accounts (JAMB)
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