Prime cost is one of the following
...Prime cost is one of the following
Expenses which can be identified with an allocated to cost centers
Aggregate direct material cost, direct labour cost and variable direct expenses
The cost taken into account in the production process whether direct or indirect
The cost of commodities supply to an undertaking
Correct answer is B
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.
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