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:

Social Welfare

A system that provides various forms of assistance to individuals and families in need, including healthcare, education, and financial aid.

Value Added

The increase in the value of a product or service as it passes each stage of production, excluding the cost of inputs.

Raw Materials

Basic materials that are used in the production of goods, services, or energy, often extracted from the natural environment.

Lawn Care Services

Services that include maintenance and aesthetic care of lawns, such as mowing, fertilizing, and weed control.