MCQ on Workshop Accounts (AFA CBTExam): The expenditure on labour and stores that can directly be chargeable to a work or contract is called? Options: 1. Total Cost 2. Time Cost 3. Prime Cost 4. None of the above Correct Answer: 3. Prime Cost --- Explanation for each option: 1. Total Cost: Explanation: Total cost includes both direct and indirect costs—i.e., all costs incurred in the production process (like overheads, admin costs, etc.). Why Incorrect: The question specifically refers to expenditures directly chargeable to a work, which are only part of the total cost. 2. Time Cost: Explanation: Time cost usually refers to the economic cost of time lost or used in decision-making, often used in project planning and opportunity cost evaluation. Why Incorrect: It is not a standard term in cost accounting to describe direct expenses like labor and materials. 3. Prime Cost (Correct Answer): Explanation: Prime cost = Direct Labor + Direct Materials. These are costs directly attributable to a specific job, work, or contract. Why Correct: Matches the definition given in the question. 4. None of the above: Explanation: This would only be correct if none of the other options matched the definition. Why Incorrect: Option 3 (Prime Cost) is the right match.