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Following are components of prime cost:
1 – Direct Material
2 – Direct labor
These components are those without which no production can be made that’s why it is called prime cost.
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What are the components of cost sheet?
There are three components of a cost sheet. These components are the prime cost, the factory cost, and the total cost.
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
Is indirect cost a prime cost?
No
What are the components of cost sheet?
There are three components of a cost sheet. These components are the prime cost, the factory cost, and the total cost.
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.
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.
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
What is the explanation of the prime number that are less than 50?
2,3,5,7,11,13,17,19,23,29,31,37,41,43,47
What are the components of analytical procedures?
developed by Hirst and Koonce (1996) describes the performance of analytical procedures as consisting of five components: expectation development, explanation generation, information search and explanation evaluation, decision making, and documentation
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 is the formula for prime cost?
Formula for prime cost = direct material + direct labor
What is an explanation of the cost concepts?
The concept of cost is that you should not spend above your limits.
