Question

If total cost of 100 units is Rs
5000 and those of 101 units is
Rs 5030 then increase of Rs 30
in total cost is
O Marginal cost
O Prime cost
O All variable overheads
O None of the above
O Option 5​

Answer 1

Answer: Prime cost

Step-by-step explanation:

Concept :  Prime cost is the direct cost of a product, it includes the material cost and the labour involved.

To find : We have to find the type of total cost

Solution :

Total cost of 100 units = 5000

∴ Cost of 1 unit = 50

∴ Cost of 101 unit = 5050

∴ It is the prime cost as the cost of 101 units will be 5050 but only Rs. 30 is incremented, so it will be the prime cost.

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