ABC Ltd. calculates the price of product by adding overheads to the prime cost as 20% of total cost and adding 25% to total costs as a profit margin. The product was sold for ₹2,450. Prime cost of the product will be ___
CS Executive · Cost and Management Accounting · PYQS · June 2019
ABC Ltd. calculates the price of product by adding overheads to the prime cost as 20% of total cost and adding 25% to total costs as a profit margin. The product was sold for ₹2,450. Prime cost of the product will be ________.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cost Sheet
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