Asked by Ashley Tyler on Jun 29, 2024
Verified
Prime costs are the combination of direct materials and direct labor costs.
Prime Costs
The sum of direct materials and direct labor expenses directly involved in the manufacturing of a product.
Direct Materials
Raw materials that can be directly attributed to the production of goods, forming a significant part of the finished product.
- Separate the ideas of prime costs from conversion costs.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
True
Explanation :
Prime costs refer to the total costs of direct materials and direct labor involved in the production of a product or service.
Learning Objectives
- Separate the ideas of prime costs from conversion costs.