[amp_mcq option1=”Prime cost + Factory overheads” option2=”Factory cost + Administrative overheads” option3=”Direct cost + Indirect expenses” option4=”Prime cost + Administrative overheads” correct=”option1″]<\/p>\n
The correct answer is A. Prime cost + Factory overheads.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Option B is incorrect because it includes administrative overheads, which are not directly related to production.<\/p>\n
Option C is incorrect because it includes direct costs and indirect expenses. Direct costs are included in prime cost, and indirect expenses are not included in the cost of production.<\/p>\n
Option D is incorrect because it includes prime cost and administrative overheads. Administrative overheads are not directly related to production, and they are not included in the cost of production.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Prime cost + Factory overheads” option2=”Factory cost + Administrative overheads” option3=”Direct cost + Indirect expenses” option4=”Prime cost + Administrative overheads” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-53852","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n