Distinguish between prime cost and supplementary cost
Answers
Prime Costs. The calculation for prime costs includes the total amount spent on direct materials in addition to direct labor. ... Unlike conversion costs, prime costs do not include any indirect costs. Prime costs are reviewed by operations managers to ensure the company has an efficient production process.
Answer:
prime cost--Prime Costs
The calculation for prime costs includes the total amount spent on direct materials in addition to direct labor. Tangible components, such as raw materials, necessary to create a finished product, are included in direct materials. For instance, the engine of a car or the spokes of a bicycle are included in direct material costs because they are each necessary to complete production of that specific item. Direct labor costs include the salary, wages, or benefits paid to an employee who works on the completion of finished products. Compensation paid to machinists, painters, or welders is common in calculating prime costs. Unlike conversion costs, prime costs do not include any indirect costs.
supplementary cost--the general cost of an undertaking as a whole including administration, interest, taxes, general maintenance, depreciation, and obsolescence
please mark me as brainlist