WAEC Accounting 2012 Objective — Question 23
Question 23 of 50 from the West African Examinations Council (WAEC) Accounting 2012 Objective paper, with the correct answer and a full explanation.
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Which of the following is a component of prime cost?
- A. Depreciation
- B. RoyaltyCorrect
- C. Factory rent
- D. Factory electricity
Explanation
Prime cost is made up of direct costs traceable to output. The royalty depends on output; thus, it is a direct cost.
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