Expenditure over and above prime cost is known as ________.
A. overhead
B. factory cost
C. cost of sales
D. cost of production
Answer: Option A
Solution(By Examveda Team)
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.Join The Discussion
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Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
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B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
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prime cost includes all direct costs remaining are indirect costs so they are overheads.