According to CIMA, the prime cost is:

CS Executive · Corporate and Management Accounting · PYQS · June 2024
According to CIMA, the prime cost is:
(A) the total cost of direct material only
(B) the total cost of direct material and direct labour
(C) the total cost of direct material, direct labour and direct expenses
(D) the total cost of direct material and indirect material

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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