Prime cost + Factory overheads
Factory cost + Administrative overheads
Direct cost + Indirect expenses
Prime cost + Administrative overheads
Answer is Wrong!
Answer is Right!
The correct answer is A. Prime cost + Factory overheads.
Prime cost is the direct cost of labor and materials used in the production of a product. Factory overheads are the indirect costs of production, such as rent, utilities, and depreciation.
The cost of production is the total cost of all the resources used to produce a product. It includes prime cost, factory overheads, and other indirect costs, such as marketing and distribution costs.
Option B is incorrect because it includes administrative overheads, which are not directly related to production.
Option C is incorrect because it includes direct costs and indirect expenses. Direct
448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube