Which of the following costs is classified as a prime cost?
A)Option A
B)Option B
C)Option C
D)Option D

Question

Which of the following costs is classified as a prime cost? 
A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

Prime costs are direct costs that are incurred in the production of goods or services. Option C is the only cost that directly relates to the production process, as it refers to the cost of labor directly involved in the production. Options A, B, and D are indirect costs and therefore not classified as prime costs.

Which of the Following Costs Is Classified as a Prime