Question

The aggregate of direct material cost, direct labour cost and direct expenses is termed as ……… *

a) Overall Cost

b) Aggregate Cost

c) Indirect Cost

d) Prime Cost ​

Answer 1

Answer:

d) Prime Cost

The aggregate of direct material cost, direct labour cost and direct expenses is termed as prime cost.

Explanation:

Prime cost is also know as direct cost of manufacture.

During manufacturing of the product, reducing the prime cost would result in increasing the profits.

It helps to plan or forecast the ordering cost, carrying cost and maintaining the economic order quantity.