Direct Material Costs and Direct Labour Costs Are Prime Costs

question 107

True/False

Direct material costs and direct labour costs are prime costs.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Debt-paying Ability

A measure of a company's financial strength, indicating its capability to meet both short-term and long-term liabilities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and health of the company.