Which of the following is included in prime costs?
A)Overhead costs
B)Indirect materials costs
C)Selling and administrative costs
D)Direct labor costs

Question

Quizplus · Accepted Answer

Prime costs are the direct costs that are involved in the production of goods or services, including the cost of direct labor and direct materials. Direct labor costs are a key component of prime costs, and they represent the wages and benefits that are paid to employees who are directly involved in the production process.

Which of the Following Is Included in Prime Costs