works cost plus administration overheads
prime cost plus works cost
prime cost plus works overhead
works overhead plus administration overheads
Answer is Wrong!
Answer is Right!
The correct answer is: B. prime cost plus works cost
Prime cost is the direct cost of producing a product, including the cost of materials and labor. Works cost is the indirect cost of producing a product, including the cost of rent, utilities, and depreciation. Therefore, the cost of production is equal to the prime cost plus the works cost.
Option A is incorrect because it includes administration overheads, which are not directly related to the production of a product. Option C is incorrect because it does not include works overhead, which is a direct cost of production. Option D is incorrect because it does not include prime cost, which is the direct cost of production.