answersLogoWhite

0


Best Answer

Prime Costs: Prime costs are those costs which are prime importance for making any product and include:

Prime Cost = Direct Material + Direct Labor

User Avatar

Wiki User

17y ago

Still curious? Ask our experts.

Chat with our AI personalities

RafaRafa
There's no fun in playing it safe. Why not try something a little unhinged?
Chat with Rafa
FranFran
I've made my fair share of mistakes, and if I can help you avoid a few, I'd sure like to try.
Chat with Fran
BlakeBlake
As your older brother, I've been where you are—maybe not exactly, but close enough.
Chat with Blake
More answers
User Avatar

Wiki User

10y ago

the direct cost of a commodity in terms of the materials and labor involved in its production, excluding fixed costs.

User Avatar

Add your answer:

Earn +20 pts
Q: What are prime cost?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Differntiate between prime cost and factory cost?

Prime cost is a subset of Factory cost. Prime cost consist of Direct material, Direct labour and Direct expenses. Factory cost = Prime cost + Production OH


Is variable overheads include in prime cost?

Direct labor and direct materials are the components of prime cost so no other cost is part of prime cost and hence variable overheads also not included in prime cost.


What is the formula to calculate prime costs?

Formula for Prime Cost = Material Cost + Labor Cost


Is the direct expense part of prime cost?

yes it is part of the prime cost


What is Prime Margin?

Sales minus Prime cost = Prime Margines. Direct material and direct labor are often referred to as prime cost.


Is indirect cost a prime cost?

No


What are the components of prime cost?

Direct labor and direct materials are the two main components of prime cost. Another component of prime cost is direct expense.


What is the formula for prime cost?

Formula for prime cost = direct material + direct labor


Is a direct labor wages a prime cost?

Formula for prime cost is as follows: prime cost = direct material + direct labor So according to above mention formula yes it is prime cost because whitout labor no unit of product can be manufactured.


What is the one cost that would be classified as part of both prime cost and conversion cost?

The one cost that would be classified as part of both prime cost and conversion cost would be:


The one cost that would be classified as part of both prime cost and conversion cost would be?

The one cost that would be classified as part of both prime cost and conversion cost


What is prime cost in restaurant accounting?

Prime cost in restaurant accounting is the sum of labor+food costs