Prime Costs Consist of Direct Materials and Direct Labor

question 197

True/False

Prime costs consist of direct materials and direct labor.

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Definitions:

Current Financial Position

An individual's or entity's financial status at a particular point in time, considering assets, liabilities, and net worth.

Internal Users

Individuals within an organization, such as managers and employees, who use financial information to make decisions.

Future Revenues

Expected income from sales or services that a company plans to earn in upcoming periods.

Long-term Obligations

Commitments or debts that a company is required to pay over a period longer than one year, encompassing both financial and non-financial liabilities.