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متابعة

What does the prime costs mean ?

 

  • a direct material + direct labour

    b direct labor + factory over head

    c direct labour + variable overhead

    d direct labour + fixed over head

     

     
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تم إضافة السؤال من قبل هيثم ناجى , محاسب اول , الفيوم لصناعة السكر
تاريخ النشر: 2015/12/22
Ma. Kristy May Falogme
من قبل Ma. Kristy May Falogme , Internal Auditor , Citimart Group of Companies

a. direct material + direct labor :)

Amr Al-Maghraby
من قبل Amr Al-Maghraby , Management Accountant , Accomplishments Trading & Contracting Company

Prime Cost = direct material + direct labour

Conversion costs = direct labour + manufacturing overheads

abdulaziz khorshid
من قبل abdulaziz khorshid , CREDIT MANAGER , RASHED ABDUL RAHMAN ALRASHED

prime cost is a combination of direct material + direct labor 

Dhatchina Moorthy Selvaraj
من قبل Dhatchina Moorthy Selvaraj , Accounts Supervisor , Gulf Agency Co. Qatar W.L.L

Prime cost is the combination of a manufactured product's costs of direct materials and direct labor

Mujibur Rahman ACCA
من قبل Mujibur Rahman ACCA , Founder And CEO , MR-Accountants

Prime cost is consist of all direct costs (Costs which can be traced directly to the product). These are direct material, direct labour and direct expense. Overheads are indirect costs (costs which can not be directly attributable to the product). Hence, option (a) is correct here. 

shaimaa fawzy
من قبل shaimaa fawzy , Assistant Auditor , KPMG

Direct labor + Direct material 

IMRAN ALI MOHAMMED
من قبل IMRAN ALI MOHAMMED , Accounts Officer , M/s. Euro Glazing Ltd

As the word 'Prime' indicates 'Key, Major, First or Main' the prime cost refers to the major cost of production which is a) Direct Labour+Direct Material'

Yar Muhammad FCCA UAECA
من قبل Yar Muhammad FCCA UAECA , Deputy Finance Manager , Prometheus Capital Finance Limited

Prime cost is the cost directly traceable to the product and thus the prime cost consist of Dirrect Labour and Direct Materials. All other options have overheads and overheads can not be directly traced to product and so dosn't make sense.

tamilvendan kaliyaperumal
من قبل tamilvendan kaliyaperumal , Assistant Project Manager , Vital Paper Products Pvt Ltd

a. Direct Material + Direct labor = Prime Cost 

 

Muhammad Saeed
من قبل Muhammad Saeed , Experienced Associate Auditor (Secondment) , Deloitte and Touche (Middle East)

Prime cost includes materials and labor cost.

Sufiyan Raza
من قبل Sufiyan Raza , Senior Document Controller , Olsen & Partners Interiors LLC

Prime cost= Direct material + Direct labour

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