0
Prime Costs: Prime costs are those costs which are prime importance for making any product and include:
Prime Cost = Direct Material + Direct Labor
Wiki User
∙ 16y ago
Wiki User
∙ 9y agothe direct cost of a commodity in terms of the materials and labor involved in its production, excluding fixed costs.
Add your answer:
Earn +20 pts
Refers to the cost of procuring prime mission equipment?
weapon system cost.
Prime cost and conversion cost share what common element of total cost?
direct labor
Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
What is the common element between prime cost and conversion cost?
Direct Labor.
A word with prime?
contract, cost, lens, meridian, minister, mover, rate, rib, time, vertical
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
