Question

If direct material= 12,000 ; the direct labour= 8000 and other direct cost=2000 then what will be the prime cost?

Answer 1

Explanation:

Prime cost = Direct material + Direct labour

Direct cost

= 12,000 + 8000+ 2000

= 22000

Answer 2

Prime Cost:

Given:

If direct material= 12,000 ; the direct labour = 8000 and other direct cost=2000 then what will be the prime cost?

Calculation of prime cost:

Particulars                                         Amount

Direct Material                                     12000

Direct Labour                                         8000

Other direct cost                                    2000

  Prime Cost                                       22000  

Prime Cost:

• Prime cost is the total of all direct costs that are incurred.

• It does not include the indirect costs.