Author: MCQsLoader

(A) Cost of raw material + direct labour
(B) Manufacturing cost + cost of goods sold
(C) Direct material + factory overhead
(D) None of above

Answer: (A) Cost of raw material + direct labour
prime cost is = Cost of raw material + direct labour

(A) Market value
(B) Book value
(C) Salvage value
(D) Depreciable cost

Answer: (B) Book value
Under declining balance method deprecation is calculated on  applying the depreciation rate to the book value of the asset at the start of the period.

(A) Sales tax
(B) Purchase discount
(C) Sales discount
(D) All of these

Answer: (A) Sales tax
Sales tax is not recorded in the books of accounts.

(A) Tangible assets
(B) Intangible assets
(C) Fixed assets
(D) None of these

Answer: (B) Intangible assets
Intangible assets are generally not recorded in the books of accounts.