Question on: WAEC Accounting - 2012
which of the following is a component of prime cost?
A
depreciation
B
royalty
C
factory rent
D
factory electricity
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Correct Option: D
Direct materials are one of the main components of prime costs and include raw materials and supplies that are consumed directly during the production of goods. In production, electricity is required to aid the process. This makes it a part of the prime cost
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