Vidyalelo
Commerce · Q8

Costing

Graduate and Post Graduate · Commerce · question 8

Q8

Indirect material scrap is adjusted along with ________.

A.
prime cost
B.
factory cost
Answer
C.
labour cost
D.
cost of goods sold

Answer: Option B

Solution

Answer: Option B
Solution:
Indirect material scrap is adjusted along with factory cost. Factory cost refers to the total cost required to manufacture goods. This concept is the basis for several cost accounting analyses.