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In the cost sheet, which total comes immediately after prime cost?
ACost of sales
BCost of goods sold
CContribution
DCost of production
Answer & Solution
Correct answer: D. Cost of production
1. The cost sheet builds in a fixed sequence.
2. Prime cost comes first, then cost of production, then cost of goods sold, then cost of sales.
3. So the total immediately after prime cost is cost of production.
4. Contribution belongs to marginal costing, not to the cost sheet build up.
_Source: ICAI Cost and Management Accounting Ch6 'Cost Sheet', section 6.3_
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