Vidyalelo
Commerce · Q287

Costing

Graduate and Post Graduate · Commerce · question 287

Q287

Direct material costs are added into direct manufacturing costs to calculate

A.
discuss costs
B.
prime costs
Answer
C.
resale cost
D.
merchandise costs

Answer: Option B

Solution

Answer: Option B
Solution:
Direct material costs are added into direct manufacturing costs to calculate prime costs. Direct materials cost the cost of direct materials which can be easily identified with the unit of production.