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CS Foundation Question

What Are Prime Cost?

  • Jenny
  • 3735 Views
  • 4 Answers
4 Answers
  • initial costs while issue of shares


  • 1st or direct cost is also called prime cost


  • prime cost i.e direct cost both are synonyms


  • Prime cost refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the use of raw materials and direct labor, but does not factor in indirect manufacturing expenses such as the cost for a company logo or gas used to deliver the product.


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