BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A prime cost is the total direct costs of production, including raw materials and labor. Indirect costs, such as utilities, manager salaries, and delivery costs, are not included in prime costs. The prime cost equation is equal to the cost of raw materials plus direct labor.

Detailed explanation-2: -Prime costs can be calculated using the following formula: Prime cost = direct materials cost + direct labor cost.

Detailed explanation-3: -Prime cost is the direct cost incurred in manufacturing a product and typically includes the direct production cost of goods, including the raw material and direct labor costs. It is an essential part of total manufacturing expenses.

Detailed explanation-4: -Explanation: Prime Cost: It consists of the costs of direct materials that go into the product, the costs of direct labor and direct expenses. It is also known as direct cost or first cost.

Detailed explanation-5: -To calculate total manufacturing cost you add together three different cost categories: the costs of direct materials, direct labour and manufacturing overheads. Expressed as a formula, that’s: Total manufacturing cost = Direct materials + Direct labour + Manufacturing overheads. That’s the simple version.