Prime Cost Consists of Direct Materials and What

question 17

Multiple Choice

Prime cost consists of direct materials and what?

• A) Direct labour.
• B) Manufacturing overhead.
• C) Indirect materials.
• D) Cost of goods manufactured.

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Definitions:

Anticipation of Demand

The process of forecasting future customer demand using historical data and trend analysis to plan and manage supply chain operations efficiently.

Offshore Sourcing

The practice of sourcing materials or products from suppliers located in foreign countries, often to reduce costs.

Weekly Capacity

The maximum amount of production or work that can be completed in a one-week timeframe by a company, facility, or machinery.

Efficiency Manufacturing

The production of goods in a manner that minimizes waste, resources, and time while maximizing output and quality.