Prime costs consist of:
A) Direct Labour and Manufacturing Overhead.
B) Direct Material and Direct Labour.
C) Direct Material and Manufacturing overhead.
D) Direct Material,Direct Labour and Manufacturing OverheaD.

Question

Quizplus · Accepted Answer

Prime costs are the direct costs of production and include only Direct Material and Direct Labour. Manufacturing overhead is an indirect cost of production and is not included in prime costs.

Prime Costs Consist Of