Question:
The Prime cost is comprises of
The Prime cost is comprises of
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Prime cost helps in determining the basic cost of producing a product before adding overheads.
Updated On: Feb 27, 2025
- All indirect cost
- All direct cost
- Direct and indirect cost
- Specific costs
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The Correct Option is B
Solution and Explanation
Prime cost refers to all direct costs involved in the production of goods. This includes direct materials and direct labor, but excludes overheads. Prime cost is used to measure the core cost of production before accounting for indirect costs.
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