Prime Costs Are

question 218

Multiple Choice

Prime costs are

• A) direct materials and factory overhead
• B) direct materials and direct labor
• C) direct labor and factory overhead
• D) period costs and factory overhead

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a good or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase.

Equilibrium Price

The price point in the market where the amount of goods being offered is equal to the amount being sought by consumers.