Which one of the following statements about cost is not correct?
A)Prime cost is the total of all direct costs.
B)Production cost comprises all direct costs plus production overheads.
C)'Indirect costs' and 'overheads' mean the same thing.
D)Direct costs include materials, labour and production overhead costs.

Question

Quizplus · Accepted Answer

Direct costs are costs that can be directly attributed to a specific product or service, including materials and labor, but do not include production overhead costs. Production overhead costs are considered indirect costs, not direct costs.

Which One of the Following Statements About Cost Is Not