JAMB Accounting 2010 Objective — Question 29
Question 29 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.
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29. The prime cost is the total of the A. production cost + selling expenses B. direct material + direct labour + direct expenses C. direct materials + work overhead expenses D. administrative expenses + selling + distribution expenses
- A. production cost + selling expenses
- B. direct material + direct labour + direct expensesCorrect
- C. direct materials + work overhead expenses
- D. administrative expenses + selling + distribution expenses
Explanation
Prime cost is the addition of all direct costs incurred in the manufacturing of goods: direct materials + direct labour + direct expenses.
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