ECONOMICS

Detailed explanation-1: -Direct materials. Manufacturing supplies. Wages for the production staff. Fuel or power consumption.

Detailed explanation-2: -Direct material costs can include the cost of raw materials, components, and supplies used in production. For example, if a company makes furniture, the direct material costs would include the cost of wood, fabric, and other materials used to make the furniture.

Detailed explanation-3: -Examples of direct costs may include: production employee wages, supplies consumed directly in the production process, and costs of consultants used in producing the finished product.

Detailed explanation-4: -Direct materials are components that go into a manufactured product. For example, components such as the screen, integrated circuits, camera modules and buttons are the direct materials involved in the production of a smartphone.

Detailed explanation-5: -Solution: Prime cost includes direct materials, direct wages and direct expenses.