O-LevelAccountingThe fundamentals of accounting7707/12 · May/June 2013 · Q261 Mark

How is the cost of production calculated?

Adirect material + direct labour + direct expenses + factory overheads

Bdirect material + direct labour + direct expenses + indirect labour

Cdirect material + direct labour + factory overheads

Ddirect material + direct labour + indirect labour

✓ Correct answer

A: direct material + direct labour + direct expenses + factory overheads

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2013 Paper 1 Variant 2, question 26.

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