Which of the following is true concerning prime costs?
A) Prime costs are direct manufacturing costs.
B) They include indirect direct manufacturing labour.
C) They equal the sum of direct manufacturing costs plus conversion costs.
D) They equal the sum of fixed manufacturing costs plus conversion costs.
E) They are indirect manufacturing costs.

Question

Quizplus · Accepted Answer

Prime costs refer to the direct manufacturing costs, which includes the cost of direct materials and direct labor.

Which of the Following Is True Concerning Prime Costs