Prime Cost Is

question 19

Multiple Choice

Prime cost is

• A) indirect materials cost and direct labor cost.
• B) direct materials cost and direct labor cost.
• C) direct labor cost and indirect labor cost.
• D) direct materials cost and indirect labor cost.

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Definitions:

Price of Earrings

The cost at which earrings are sold, which may vary based on materials, design, and brand.

Income

The amount of money or assets received over a period of time, typically through work, investments, or business operations.

Compensating Variation

An economic concept representing the monetary amount needed to compensate an individual for a price change or policy effect, keeping utility constant.

Equivalent Variation

A measure of the change in wealth needed to maintain a consumer's utility level constant before and after a price change.