Day: June 10, 2021

What is the definition of prime cost?

Select ONE answer:

1. direct materials + direct labour
2. direct materials + direct labour + direct expenses
3. direct materials + direct labour + factory overheads
4. direct materials + direct labour + direct expenses + factory overheads

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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