Examlex
Explain the difference between a "pictorial" diagram and a "schematic."
Prime Cost
The combined costs of direct materials and direct labor that are directly involved in the manufacturing of a product.
Direct Labor
The wages and salaries of employees who are directly involved in the production of goods or services.
Manufacturing Overhead
All manufacturing costs that are not directly associated with the production of goods, such as utilities, rent, and salaries for managers.
Direct Materials
The raw materials that can be physically and directly associated with manufacturing the end product.
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