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The term “prime costs” refers to:

<p><em><strong>A. Manufacturing costs incurred to produce units of output. </strong></em></p> <p><em><strong>B. All costs associated with manufacturing other than direct labor costs and raw material costs. </strong></em></p> <p><em><strong>C. The sum of direct labor costs and all factory overhead costs. </strong></em></p> <p><em><strong>D. The sum of raw material costs and direct labor costs.</strong></em></p>

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Question added by Deleted user
Date Posted: 2015/01/10
Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

d

prime cost refers to direct production cost

imran Noor -
by imran Noor - , Audit Officer , Auditor General of Pakistan

The correct option is (D)

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

Option (D)

Mirasol Consulta
by Mirasol Consulta , Program Accountant , PACIFIC ARCHITEC ENGINEERING (PAE)

The answer is letter D. Prime costs is the sum of raw materials and direct labor cost

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (D)  The sum of raw material costs and direct labor costs.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Yes I agree with the experts, prime costs

D. The sum of raw material costs and direct labor costs.

Anish Joseph
by Anish Joseph , Finance Manager , Al Bahya Trading & Services

C. The sum of direct labor costs and all factory overhead costs.

Kashif Pirzada
by Kashif Pirzada , Finance Manager , Edge Global Consulting Limited

D

fadil hoory
by fadil hoory , محاسب , شركة مقاولات بالسعودية

answer(d)

AZHAR NAWAZ
by AZHAR NAWAZ , Assistant Manager Accounts , Quantum Geoservices (Pvt) Ltd

D

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