Prime cost is Group of answer choices direct labor cost and indirect labor cost. indirect materials cost and direct labor cost. direct materials cost and indirect labor cost. direct materials cost and direct labor cost.

Question

Business

Cassius Hines

2 October, 03:20

Prime cost is Group of answer choices direct labor cost and indirect labor cost. indirect materials cost and direct labor cost. direct materials cost and indirect labor cost. direct materials cost and direct labor cost.

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Answers (1)

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Zane Blackwell · Answer 1

Answer: Direct material cost and direct labor cost.

Explanation:

Prime costs are the expenses incurred while creating finished goods. Prime cost is calculated by adding the direct material cost and direct labor cost.

Direct materials are the raw materials that are vital to produce a finished good while direct labor costs are wages and salaries or benefits that are paid to a worker who worked on the manufacturing of the good.

The prime costs in organizations are usually checked by the operations manager to know if there's efficiency in the production process of the company.