Q72
Office and administrative expenses can be charged on the basis of _______.
A.
material cost
B.
labour cost
C.
prime cost
AnswerD.
factory cost
Answer: Option C
Solution
Answer: Option C
Solution:
Office and administrative expenses can be charged on the basis of prime cost. Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales.