Prime Cost is part of the production cost,also called the manufacturing cost or factory cost.
Prime Cost includes:
A) All costs associated with the production of a product, or the running of a factory
B) Direct material costs only
C) All material costs and all labour costs
D) Direct materials and direct labour costs

Question

Quizplus · Accepted Answer

The terminology can be confusing! Prime Cost is about the direct cost of the product itself. It is PART of the production cost - but not all of it!

Prime Cost Is Part of the Production Cost,also Called the Manufacturing