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Q: What are the advantages of prime cost?
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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.


What are the Advantages and dis advantages of stylus?

They cost extra.


Advantages and disadvantages of cost management system?

advantages of cost management in relation to finacial efficiency


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


What are the disadvantages and advantages of capitlism?

cost of capital advantages


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.