In cost accounting, the prime cost is equal to: MCQ with Answer and Explanation

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In cost accounting, the prime cost is equal to:

A. Cost of production + Selling overheads

B. Total cost - Profit

C. Direct materials + Direct labor + Direct expenses

D. Factory cost + Admin overheads

Answer: Option C

Solution (By JKExamLibrary)

Prime cost is the aggregate of all direct costs, specifically direct materials, direct labor, and direct expenses.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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