Answered: 4. Prime costs consist of: Select…

4. Prime costs consist of: Select one: a. Direct Labour and Manufacturing Overhead. b. Direct Material and Direct Labour. c. Direct Material and Manufacturing overhead.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 13MC: Which of the following are prime costs? A. indirect materials, indirect labor, and direct labor B....

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Question

Prime costs consist of:

Select one:

a. Direct Labour and Manufacturing Overhead.

b. Direct Material and Direct Labour.

c. Direct Material and Manufacturing overhead.

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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Similar questions

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