The prime cost is the total of the?

  • A production cost + selling expenses
  • B direct material + direct labour + direct expenses
  • C direct material + work overhead expenses
  • D administrative expenses + selling + distribution expenses
jamb 2010accounting

The correct answer is B. direct material + direct labour + direct expenses

The prime cost is the summation of all direct expenses and direct materials used in production. Its simply direct cost incurred during production

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