Home » Classroom » WAEC Accounting 2012 Question

which of the following is a component of prime ... - WAEC Accounting 2012 Question

which of the following is a component of prime cost?

A
depreciation
B
royalty
C
factory rent
D
factory electricity
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

Please share this, thanks:

Add your answer

Notice: Posting irresponsibily can get your account banned!

No responses