The total of all direct expenses is known as …………..cost. Answer Answer Option Works Production Prime
Answers
Answer:
Cost of production
Explanation:
Cost of production
Answer:
PRIME COST
Explanation:
The total of all direct expenses is known as …PRIME COST………..cost.
Direct expenses are those that are linked to a specific cost object, while indirect expenses are associated with the entire business and not specific cost objects.
TO calculate prime cost = Total COGS+TOTAL LABOUR
As a business owner, you can use the prime cost information to identify which products are profitable and which ones are not.
Prime costs refer to the costs directly associated with producing a product, namely, raw material and labor costs.
You could then raise or lower the prices of unprofitable products, or discontinue production altogether.
Additionally, you can also use prime cost figures to negotiate better deals with your suppliers and reduce your overall production costs.
The project code is #SPJ2