[amp_mcq option1=”direct materials, direct wages and indirect expenses” option2=”indirect materials and indirect labour and indirect expenses” option3=”direct materials, direct wages and direct expenses” option4=”direct materials, indirect wages and indirect expenses” correct=”option3″]<\/p>\n
The correct answer is: C. direct materials, direct wages and direct expenses<\/strong>.<\/p>\n Prime cost is the direct costs incurred in the production of a product. It includes the cost of direct materials, direct labor, and direct expenses.<\/p>\n Indirect materials, indirect labor, and indirect expenses are not included in prime cost. These costs are not directly related to the production of a product and cannot be easily traced to the finished product. For example, the cost of the electricity used to light the factory is an indirect expense.<\/p>\n I hope this helps!<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”direct materials, direct wages and indirect expenses” option2=”indirect materials and indirect labour and indirect expenses” option3=”direct materials, direct wages and direct expenses” option4=”direct materials, indirect wages and indirect expenses” correct=”option3″]<\/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-54582","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n