WAEC Accounting 2013 Objective — Question 47

Question 47 of 50 from the West African Examinations Council (WAEC) Accounting 2013 Objective paper, with the correct answer and a full explanation.

Which of the following is not part of prime cost of production?

A. Depreciation of factory equipmentCorrect
B. Direct wages
C. Direct expenses
D. Carriage on raw materials

Explanation

Prime cost entails all direct cost related to production i.e. all costs that can be traced to unit of output. Depreciation is indirect because it cannot be traced to output and thus not a prime cost.

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