WAEC - Accounts Principles Of Accounts (2024 - No. 6)
In manufacturing account, wages of machine operators are classified as
prime cost.
factory overheads.
work-in- progress.
administrative overheads.
Explanation
Wages of machines operators is a direct cost because in most cases, he will be remunerated based on the quantity produced. This has a direct relationship with output. Thus, it is part of prime cost and prime cost are direct cost in production.
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