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Commerce · Q76

Costing

Graduate and Post Graduate · Commerce · question 76

Q76

The most important element of cost in manufacturing industries is _________.

A.
material
Answer
B.
labour
C.
direct costs
D.
indirect costs

Answer: Option A

Solution

Answer: Option A
Solution:
The most important element of cost in manufacturing industries is material. Material is the first and most important element of cost. In most of the manufacturing organisations, materials form the single largest component of cost.