Which of the following is not part of prime cost of produ...
Which of the following is not part of prime cost of production?
Depreciation of factory equipment
Direct expenses
Direct wages
Carriage on raw materials
Correct answer is A
Prime costs are all of the costs that are directly attributed to the production of each product. Prime costs are direct costs, meaning they include the costs of direct materials and direct labor involved in manufacturing an item. Companies use prime costs to price their products.
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