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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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