
Which expense is included in prime cost of manufacturing?
Select ONE answer:
- depreciation of machinery
- purchase of factory machinery
- purchase of raw materials
- supervisor’s wages
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 3
- Not correct
- Not correct
- Correct
- Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

why not 4? isn’t wages expense ?
LikeLike
Its not a direct expense but an indirect expense – see Topic 12 Absorption costing 🙂
LikeLike