JAMB Accounting 2011 Objective — Question 27

Question 27 of 49 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2011 Objective paper, with the correct answer and a full explanation.

The production cost that does not form part of the product but is incidental to production and facilitates the production activities is the

A. A. prime cost
B. B. indirect costCorrect
C. C. total cost
D. D. direct cost

Explanation

Indirect costs (factory overheads) are not directly traced to the produced goods but have an impact on, and facilitate, the production of the goods.

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