What is prime cost?
O (a)Total direct costs only
O
(b)Total indirect costs only
Ο Ο
(C)Total non-production costs
O Total production costs
Answers
Answer:
A prime cost is the total direct costs of production, including raw materials and labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. ... Businesses need to calculate the prime cost of each product manufactured to ensure they are generating a profit.
so I guess A) Total direct costs only is the right answer
I really hope this helps you if it does please let me know by marking my answer as brilliant answer please it would mean a lot to me (◕ᴗ◕✿)
Answer:
Answer:
A prime cost is the total direct costs of production, including raw materials and labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. ... Businesses need to calculate the prime cost of each product manufactured to ensure they are generating a profit.
so I guess A) Total direct costs only is the right answer
I really hope this helps you if it does please let me know by marking my answer as brilliant answer please it would mean a lot to me (◕ᴗ◕✿)