Vidyalelo
Commerce · Q146

Costing

Graduate and Post Graduate · Commerce · question 146

Q146

Expenditure over and above prime cost is known as ________.

A.
overhead
Answer
B.
factory cost
C.
cost of sales
D.
cost of production

Answer: Option A

Solution

Answer: Option A
Solution:
Expenditure over and above prime cost is known as overhead. Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.