Question

Choose the odd one out:

• A. Direct cost
• B. Flat cost
• C. Work cost
• D. First cost

Hint:

In costing, each term has a clear definition — Flat cost is not one of them.

Answer 1

The Correct Option is B

Direct cost refers to costs that can be directly traced to a specific product, such as raw materials or direct wages.
Work cost is the total of prime cost plus factory overheads, representing the cost incurred up to the factory stage.
First cost usually means the initial cost incurred to acquire or produce an asset or product.
All these are recognized costing terms used in cost accounting.
However, Flat cost is not a standard cost accounting term — it is a general term sometimes used to mean a fixed or unchanging cost, but it does not have a precise technical meaning in cost accounts.
Therefore, the odd one out in the list is Flat cost.