jtasheinea
jtasheinea
25-02-2022
Law
contestada
WHAT IS PRIME OVERHEAD COST?
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LittleCupid
LittleCupid
25-02-2022
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.
The prime cost equation is equal to the cost of raw materials plus direct labor.
Businesses need to calculate the prime cost of each product manufactured to ensure they are generating a profit.
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nyk041117
nyk041117
25-02-2022
The total direct costs of production, including raw materials and labor.
That is a prime cost
Answer Link
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