Question

To control costs, it is essential to keep control on ______.

Options

• Prime cost

• Overheads

• Indirect materials and tools cost

• All of these

Answer 1

To control costs, it is essential to keep control on Prime cost, Overheads and Indirect materials and tools cost.

Explanation:

To properly control costs, all components must be managed, including prime costs, which cover direct materials and labour; indirect materials and tool costs, which are required but not directly related to a specific product; and overheads, which include general business expenses. Controlling all of these areas leads to total cost management.