Vidyalelo
Commerce · Q10

Costing

Graduate and Post Graduate · Commerce · question 10

Q10

Total of all direct costs is termed as ________.

A.
prime cost
Answer
B.
works cost
C.
cost of sales
D.
cost of production

Answer: Option A

Solution

Answer: Option A
Solution:
Total of all direct costs is termed as prime cost. A prime cost is the total direct costs, which may be fixed or variable, of manufacturing an item for sale.