0
prime cost = direct labour cost + direct material cost + direct expenses
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
The sum of the explicit and implicit costs incurred in the production process is called?
Fixed
Difference between trading account manufacturing account?
A Trading Account is a Final and financial statement drawn by a firm at the end of their accounting period showing the relationship that existed between their Sales volume and Purchases and the Gross profit or loss arrived. When Net Sales exceeds the Cost of Sales then there is Gross Profit. However, if the Cost of Sales exceeds the Net Sale(Sales less Return Inwards) then there is Gross loss. A Manufacturing Account is part of the Final accounts drawn by a manufacturing entity before drawing the Trading Account. Since the firm is engaged in the manufacturing or converting of raw materials to finished goods,they express the monetary value of Prime Cost(Direct Materials + Direct Labour + Direct Expense) and Overheads( Sum of all Indirect cost) to determine the cost of Production.
The ratio of the sum of cash receivables and marketable securities to current liabilities is called?
Is Current Ratio
How do you compute the cost of products transferred from production to finished goods?
One would need to add together the following costs; materials, labouring and overheads. The sum of these would then be subtracted from the start balance. The answer would then indicate the total cost of the goods.
What is prime cost in cost accounting?
Sum of direct materials and direct labor
Is the cost of direct materials classified as a conversion cost?
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
Is Conversion cost is the sum of direct labor and manufacturing overhead?
Yes conversion cost is sum of direct labor and overheads which required to run the process of production of units.
What is the direct labor cost if a company's direct labor is 40 percent of its conversion cost and the manufacturing overhead cost for the last period was 60000 and the direct materials cost was 30000?
60000 + 30000 = 90000 = 60% / 60 = 1500 = 1% x 100 = 150000 = 100% X .4 = 60000 The above solution is incorrect. By definition, the conversion cost is the sum of the direct labor cost and the overhead. Therefore, if we assume x is the conversion cost, then x = 0.4x + 60,000. The solution is conversion cost = 100,000. Hence, the direct labor cost = 40,000. Note that the knowing the direct material cost is not necessary for the computation of the labor cost. I am really bad at math so i just have to think you are right on this one
What is the multifactor productivity ratio?
Multifactor productivity measures are indicators that take into account the utilization of multiple inputs (e.g., units of output per the sum of labor, capital, and energy or units of output per the sum of labor and materials).
How do you calculate total variable expenses in a contribution income statement?
Total variable cost is typically the sum of all variable labor, variable materials, and variable overhead expenses.
Can every element of direct sum of subspaces be written uiquely as a sum of the elements of subspaces?
yes
What is answer to an addition problem called?
It is called the "sum".
What is the sum of a group of numbers called?
It's called their "sum".
What is the answer to an addition problem called?
The answer to an addition problem is called the sum.The sum of 2 plus 2 is 4.
When you add two fractions the answer is called?
the sum the sum
In mathematics what is the symbol for sum?
hi,the symbol for direct sum is The bun symbol ⊕, or the coproduct symbol ∐, is used.the symbol for connected sum is #.
