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WAEC Financial Accounting 2003 Question 29

Question 29

Manufacturing Accounts

Which of the following is an item of prime cost?

  1. A.Royalties payable
  2. B.Factory salaries
  3. C.Depreciation of plant
  4. D.Rent of factory building.
Show the answer and explanation

Answer: A (Royalties payable)

Explanation

Royalties are a direct expense, part of prime cost; the others are overheads.