Prime cost consists of direct materials and what?
A) Direct labour.
B) Manufacturing overhead.
C) Indirect materials.
D) Cost of goods manufactureD.

Question

Quizplus · Accepted Answer

Prime cost consists of direct materials and direct labor only. Manufacturing overhead and indirect materials are not included in prime cost. The cost of goods manufactured is the total production cost of goods completed during a specific period.

Prime Cost Consists of Direct Materials and What