Works or Factory cost is ........

Costing - Phase (I & II) Overview of Cost and Management Accounting

Download Solution PDF

Works or Factory cost is:

Prime Cost + Factory overheads

Prime Cost + Factory overheads + Administrative overheads

Prime Cost + Factory overheads + Administrative overheads + selling and distribution overheads

None of the above

छोटे Courses बड़े Results

Master Overview of Cost and Management Accounting

Prepare through Micro-courses

Try Now

Explanation:

Factory cost or works cost is the sum total of Prime Cost and Factory Overheads. Prime cost/initial cost or direct cost is the sum total of direct material consumed, direct labour and direct expenses. Factory overheads are indirect elements of cost incurred in factory during production like indirect wages, indirect material etc.