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Prime cost

Which of the following expense is not an item of factory overhead ?

A insurance of the factory

B. time keeper’s salary

C. freight on raw materials

D. stores

Prime cost is the aggregate of

A. direct materials consumed + direct labour

B. direct materials purchased + direct labour + direct expense

C. direct materials consumed + direct labour + direct expenses

D. direct materials consumed + direct labour + factory overhead

Generally work-in-progress is valued at

A. prime cost

B. factory cost

C. factory cost + administrative overhead

D. prime cost + variable factory overhead

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