Prime cost consists of $\begin{array}{llcc}
\underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\
\end{array}$

A) no yes no
B) yes yes no
C) yes no yes
D) no yes yes

Question

Prime cost consists of $\begin{array}{llcc}
  \underline{\text { direct material } }&\underline{  \text { direct labor }} & \underline{ \text {overhead   }}\
\end{array}$

A) no yes no
B) yes yes no
C) yes no yes
D) no yes yes

Quizplus · Accepted Answer

Prime cost includes direct materials and direct labor, but not overhead.

Prime Cost Consists Of direct material ‾ direct labor ‾overhead ‾\begin{array}{llcc} \underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\\\end{array} direct material ​​ direct labor ​​overhead ​​

Prime Cost Consists Of $\begin{array}{llcc} \underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\\\end{array}$