Prime costs are comprised of:
A) direct materials and manufacturing overhead.
B) direct labor and manufacturing overhead.
C) direct materials, direct labor, and manufacturing overhead.
D) direct materials and direct labor.
E) direct materials and indirect materials.

Question

Quizplus · Accepted Answer

Prime costs consist of direct materials and direct labor, which are the primary and direct inputs into the production of goods. Manufacturing overhead is not included in prime costs.

Prime Costs Are Comprised Of