JAMB Accounting 2021 Objective — Question 16

Question 16 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2021 Objective paper, with the correct answer and a full explanation.

16. Which of the following is not an item to prime cost? a. Factory overhead b. Direct materials c. Direct labour d. Royalty

A. Factory overheadCorrect
B. Direct materials
C. Direct labour
D. Royalty

Explanation

Factory overhead is an indirect cost, while prime cost is made up of only direct costs (direct materials, direct labour, and direct expenses such as royalty).

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