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Allison Palmarin
on Nov 17, 2024

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Prime costs are the combination of direct labor costs and factory overhead costs.

Prime Costs

The direct costs of manufacturing an item, which typically include direct labor and direct materials.

Factory Overhead Costs

Costs incurred from running a manufacturing plant that cannot be directly associated with any particular product, such as utilities, depreciation, and maintenance expenses.

  • Identify the distinctions between prime costs and conversion costs.
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Frida Sanchez SalaisNov 22, 2024
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