Asked by Milano Irvin on Jun 03, 2024
Verified
Prime cost is the sum of direct materials cost and direct labor cost.
Prime Cost
Direct materials cost plus direct labor cost.
Direct Labor
Costs attributed to the work done by employees who are directly involved in the production of goods or services.
- Grasp the concepts of prime cost and conversion cost and their components.
Verified Answer
NP
Nathan PryerJun 08, 2024
Final Answer :
True
Explanation :
Prime cost includes only direct materials cost and direct labor cost. It does not include indirect costs such as overhead expenses.
Learning Objectives
- Grasp the concepts of prime cost and conversion cost and their components.