Asked by
Ermina Dzebic
on Nov 13, 2024Verified
Prime costs are the combination of direct materials and direct labor costs.
Prime Costs
The combined costs of direct materials and direct labor that are directly involved in the production of goods.
Direct Materials Costs
Costs that are directly traceable to the production of specific goods or services, such as raw materials used.
Direct Labor Costs
Expenses related to employees who directly contribute to the production of goods or services, such as wages for assembly line workers.
- Recognize the elements that make up product expenses and comprehend the components of prime costs as well as conversion costs.
Verified Answer
SA
Learning Objectives
- Recognize the elements that make up product expenses and comprehend the components of prime costs as well as conversion costs.