Multiple choice

Directions: Choose the correct option for the given question.

An element of cost refers to

  1. overhead cost

  2. prime cost

  3. component cost

  4. both (1) and (3)

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An element of cost refers to the classification of costs into material, labor, and expenses. Component cost is a subset of material cost.

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