CIMA Fundamentals of financial accounting BA3 Question # 72 Topic 8 Discussion

CIMA Fundamentals of financial accounting BA3 Question # 72 Topic 8 Discussion

BA3 Exam Topic 8 Question 72 Discussion:
Question #: 72
Topic #: 8

If the royalty cost falls on items used in the manufacturing process, which TWO of the following would be true?


A.

Prime cost increases


B.

Factory cost of production reduces.


C.

Factory cost of goods completed remains the same


D.

Factory cost of production increases


E.

Prime cost reduces


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