Multiple choice

Directions: Choose the correct option for the given question.

Any expenditure over and above the prime cost is

  1. variable cost

  2. work cost

  3. factory cost

  4. overhead cost

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

Prime cost is the sum of direct material, direct labor, and direct expenses. Any costs incurred beyond these are classified as overheads, which include indirect materials, indirect labor, and indirect expenses.

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