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WAEC Accounting 2014 Objective — Question 18

Question 18 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

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The sum of direct cost in a manufacturing account is

  • A. production cost
  • B. prime costCorrect
  • C. total cost
  • D. finance cost

Explanation

All direct costs in a manufacturing account (direct materials, direct labour, direct expenses) sum to the prime cost.

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