Multiple choice

Directions: Choose the correct option for the given question.

Works cost + Administration overhead =

  1. Prime cost

  2. Factory cost

  3. Cost of production

  4. Cost of sales

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

Factory cost (or works cost) plus administration overheads related to production results in the cost of production. This represents the total cost incurred to manufacture the goods before adding selling and distribution expenses.

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