JAMB - Accounts Principles Of Accounts (2025 - No. 8)
Which of the following is not part of prime cost of production?
depreciation of factory equipment
direct expenses
cost raw materials
carriage on raw materials
Explanation
Prime cost of production consists of direct costs such as raw materials, direct labour, and other direct expenses. Depreciation of factory equipment is an indirect cost and therefore not included in prime cost.
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