Which of the following items would be classified as a part of prime cost?
A) Direct labor cost
B) Factory overhead cost
C) Selling cost
D) Administrative cost

Question

Quizplus · Accepted Answer

Prime cost includes the direct costs of materials and labor used in the production process. Direct labor cost is a part of prime cost, while factory overhead cost, selling cost, and administrative cost are not.

Which of the Following Items Would Be Classified as a Part