passwella.
Menu

WAEC Financial Accounting 1992 Question 6

Question 6

Manufacturing Accounts

In a manufacturing company, wages paid to operatives increase the value of

  1. A.turnover
  2. B.prime cost
  3. C.gross profit
  4. D.net profit
  5. E.overhead cost.
Show the answer and explanation

Answer: B (prime cost)

Explanation

Wages of workers making the goods are direct labour, part of prime cost.