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Expenditure over and above prime cost is known as

This question belongs to Commerce Costing
Costing
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Expenditure over and above prime cost is known as ________.

Answer & Solution
Correct Answer: Option A
Expenditure over and above prime cost is known as overhead. Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.
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1 Comment
Naaresh Kumar
Naaresh Kumar 8 years ago
prime cost includes all direct costs remaining are indirect costs so they are overheads.
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