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which of the following is a component of prime cost?

which of the following is a component of prime cost?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Depreciation
  • B Royalty
  • C Factory rent
  • D Factory electricity
Correct Answer: Option D
Explanation:
Direct materials are one of the main components of prime costs and include raw materials and supplies that are consumed directly during the production of goods. In production, electricity is required to aid the process. This makes it a part of the prime cost

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