Question

The selling price of the product is determined by adding

• A. Prime cost + profit
• B. Work cost + profit
• C. Cost of sales + profit
• D. Overheads + profit

Hint:

Adding profit to prime cost helps in setting a price that covers all expenses and provides a margin.

Answer 1

The Correct Option is A

The selling price of a product is determined by adding the prime cost and the profit margin. This ensures that the price covers all production costs while providing a profit to the business.