Question

in an industry, is it necessary to distinguish between prime cost, chargeable expenses and overheads? justify ​

Answer 1

Answer:

Prime cost refers to the expenses incurred in acquisition of raw materials and labour to be used in production. Establishing prime costs helps in determining the amount of input required to get a specified output.

-On the other hand overhead costs refer to those cost incurred in running a business that are not directly intertwined with the production.