Prime Cost Definition:
Prime cost is equal to total direct materials cost plus direct labor cost.
Formula of prime cost can be written as: Prime cost = Direct materials + Direct labor
Relevant terms:
Conversion cost
Total factory cost
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Prime cost is equal to total direct materials cost plus direct labor cost.
Formula of prime cost can be written as: Prime cost = Direct materials + Direct labor
Relevant terms:
Conversion cost
Total factory cost
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