Prime Cost Is the Sum of Direct Materials Cost and Direct

question 342

True/False

Prime cost is the sum of direct materials cost and direct labor cost.

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Definitions:

Legal Tender

Officially recognized currency that can be used to settle debts, public charges, taxes, and dues.

Warranty Breach

Occurs when a product fails to meet the standards or conditions promised by a warranty, leading to potential legal redress.

Condition Subsequent

A condition in a contract that, when fulfilled, terminates an existing obligation under the contract.

Legal Tender

Currency that by law must be accepted as payment for debts and financial obligations.