In a manufacturing company, wages paid to operatives increase the value of
Question 1 Report
In a manufacturing company, wages paid to operatives increase the value of
Answer Details
In a manufacturing company, wages paid to operatives are a direct cost associated with the manufacturing process. Direct costs are costs that can be directly traced to specific products and are necessary for the production process to take place.
Wages paid to operatives are part of the prime cost of the product. Prime cost refers to the direct costs associated with the manufacturing process, such as raw materials, direct expenses, and wages.
Therefore, when wages are paid to operatives, they increase the value of the prime cost of the product. This is because wages are a necessary cost for the production process, and without them, the product cannot be produced.
Hence, the correct option is "prime cost".
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