Question

Prime cost consists of —

• A. Direct material + Direct labour + Direct expenses
• B. Direct material + Factory overhead
• C. Direct labour + Administrative overhead
• D. All indirect costs

Hint:

Prime Cost = Direct Costs only

Answer 1

The Correct Option is A

Prime cost includes all direct costs of production. \[ \text{Prime Cost} = \text{Direct Material} + \text{Direct Labour} + \text{Direct Expenses} \] Final Answer: \[ \boxed{(A)} \]