Direct material Rs 50,000, direct labour Rs 30,000, direct expenses Rs 5,000. What is the prime cost?
ARs 35,000
BRs 85,000
CRs 75,000
DRs 80,000
Answer & Solution
Correct answer: B. Rs 85,000
Prime cost is 50,000 + 30,000 + 5,000 = Rs 85,000.
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