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Question

Operating cost includes ___________.

A
Cost of direct materials
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B
Cost of direct labour
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C
Overhead costs
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D
All of the above
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Solution

The correct option is C All of the above
Operating cost is the cost that is associated with the administration and maintenance of the business on a day-to-day basis. It includes various costs such as cost of direct materials, direct labour, overhead costs.etc.

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