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Which of the following is correct?
1) Prime cost refers to the actual cost of articles at shop and supply of articles only
2) For payment to the contractor, actual price paid to merchants will be considered for prime cost articles ignoring any cash discounts the contractor may have received
  • a)
    only 1
  • b)
    only 2
  • c)
    both
  • d)
    none of these
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Which of the following is correct?1) Prime cost refers to the actual c...
Prime cost- actual or purchase cost of any item at shop and refers to the supply of items but not to carrying out of work. For payment to the contractor, actual price paid to merchants will be considered for prime cost articles ignoring any cash discounts the contractor may have received.
There is no profit for this supply but the actual cost of carriage is allowed to the contractor, if specified.
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Which of the following is correct?1) Prime cost refers to the actual cost of articles at shop and supply of articles only2) For payment to the contractor, actual price paid to merchants will be considered for prime cost articles ignoring any cash discounts the contractor may have receiveda)only 1b)only 2c)bothd)none of theseCorrect answer is option 'C'. Can you explain this answer?
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