Respuesta :

LittleCupid
  • A prime cost is the total direct costs of production, including raw materials and labor.
  • Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs.
  • The prime cost equation is equal to the cost of raw materials plus direct labor.
  • Businesses need to calculate the prime cost of each product manufactured to ensure they are generating a profit.
nyk041117
The total direct costs of production, including raw materials and labor.

That is a prime cost

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