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which of the following is a component of prime cost?

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Accounts - Principles of Accounts WAEC 2012

which of the following is a component of prime cost?

  • depreciation
  • royalty
  • factory rent
  • factory electricity checkmark

The correct answer is: D

Explanation

Direct materials are one of the main components of prime costs and include raw materials and supplies that are consumed directly during the production of goods. In production, electricity is required to aid the process. This makes it a part of the prime cost

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