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otal of all direct costs is termed as .a.cost of production.b.cost of sales.c.prime cost.d.works cost.

Question

Total of all direct costs is termed as

  • a. cost of production
  • b. cost of sales
  • c. prime cost
  • d. works cost
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Solution

To determine the correct answer to the question, let's analyze the terms provided.

  1. Cost of Production: This refers to all costs involved in making a product, including direct and indirect costs. It includes materials, labor, and overhead costs but is generally broader than just direct costs.

  2. Cost of Sales: This typically refers to the costs directly tied to the sale of goods or services, which includes direct costs associated with the production of goods sold.

  3. Prime Cost: This specifically includes all direct costs associated with manufacturing, such as direct materials and direct labor. It does not include indirect costs.

  4. Works Cost: This term usually encompasses the total cost of manufacturing a product, including both direct and indirect costs.

Given these definitions, the term that accurately represents the "total of all direct costs" is c. prime cost.

Final Answer: c. prime cost

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