JAMB Accounting 2013 Objective — Question 32

Question 32 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.

I. Direct materials II. Direct labour III. Direct expenses IV. Factory Expenses. Prime cost consists of

A. I, II and IIICorrect
B. I, II and IV
C. I, III and IV
D. II, III and IV

Explanation

Prime cost consists of direct costs only (direct materials, direct labour and direct expenses), while factory expenses are an indirect cost, also referred to as factory overhead.

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