use the information contained in the table to anwser the qustion below;
from the data above, compute the prime cost.
A. N6,500 B. N 8,500 C. N6,000 D. N7,500
Correct Answer: B
Explanation
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs. from the table above, prime cos is derivrd thus; Prime cost = direct material + direct labour + direct expenses 2,500+5,000+1,000=8,500
