Prime costs is the sum of
A)the direct labor costs and indirect labor costs.
B)the direct material costs,direct labor costs,and overhead costs.
C)the direct labor costs and overhead costs.
D)the direct materials costs and direct labor costs.

Question

Quizplus · Accepted Answer

Prime costs are the sum of direct materials costs and direct labor costs, as they are directly traceable to the production process. Overhead costs and indirect labor costs are not included in the calculation of prime costs.

Prime Costs Is the Sum of