Prime Cost Consists Of

question 335

Multiple Choice

Prime cost consists of:

• A) direct labor and manufacturing overhead.
• B) direct materials and manufacturing overhead.
• C) direct materials and direct labor.
• D) direct materials, direct labor and manufacturing overhead.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Endowment Effect

The cognitive bias causing individuals to ascribe higher value to things merely because they own them.

Loss Aversion

A psychological principle suggesting people tend to prefer avoiding losses to acquiring equivalent gains.

Military Time

A timekeeping system that runs from midnight to midnight, displayed in a 24-hour format, to avoid ambiguity.