otal of all direct costs is termed as .a.works cost.b.cost of production.c.prime cost.d.cost of sale
Question
Total of all direct costs is termed as:
- a.
works cost
. - b.
cost of production
. - c.
prime cost
. - d.
cost of sale
.
Solution
The total of all direct costs is termed as c. Prime Cost.
Here's why:
a. Works Cost: This includes direct materials, direct labor, and other direct costs, but it also includes indirect manufacturing costs (also known as factory overheads).
b. Cost of Production: This includes the cost of the raw materials, labor used in production, and all overhead costs used in producing a product.
c. Prime Cost: This is the total of direct costs, which may include direct materials, direct labor, and other direct costs. This does not include indirect costs.
d. Cost of Sale: This is the total cost of manufacturing and delivering a product or service to consumers. It includes both direct and indirect costs.
So, the answer is c. Prime Cost.
Similar Questions
otal of all direct costs is termed as .a.works cost.b.cost of production.c.prime cost.d.cost of sale
Direct costs of producing a product.Select one:a.Prime Costsb.Gross profitc.Conversion Costsd.T-account
Expenditures for acquisition of raw materials for your products are a part of which Costing type?1 puntoDirect CostIndirect CostStaff CostMaterial Cost
Wages paid to a labour who was engaged in production activities can be termed as.a.imputed cost.b.direct cost.c.indirect cost.d.sunk cost.
The cost sheet provides a summary of:a.Fixed costsb.Variable costsc.Direct costsd.All costs associated with a product or serviceClear my choice
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.