Prime product costs include
A)only factory overhead.
B)only direct labour.
C)direct labour and factory overhead.
D)direct materials and direct labour.

Question

Quizplus · Accepted Answer

Prime product costs include the cost of direct materials and direct labour, which are directly incurred in the production process. Factory overhead is an indirect cost and is not included in prime product costs. Therefore, option D is the most appropriate choice.

Prime Product Costs Include