Q69
Prime cost includes _______.
A.
direct materials, direct wages and indirect expenses
B.
indirect materials and indirect labour and indirect expenses
C.
direct materials, direct wages and direct expenses
AnswerD.
direct materials, indirect wages and indirect expenses
Answer: Option C
Solution
Answer: Option C
Solution:
Prime cost includes direct materials, direct wages and direct expenses. Prime costs are a firm's expenses directly related to the materials and labor used in production. It refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company.