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

Question

Quizplus · Accepted Answer

Prime product costs refer to the direct costs of manufacturing a product, which include direct materials and direct labor. Factory overhead is an indirect cost and is not included in prime product costs. Therefore, choice D, direct materials and direct labor, is the best answer.

Prime Product Costs Include