Which of the Following Would Be Classified as a Prime

question 32

Multiple Choice

Which of the following would be classified as a prime cost?

• A) cost of direct materials used
• B) depreciation on factory equipment
• C) salary of sales personnel
• D) depreciation on office furniture

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Definitions:

Management

The process of directing, controlling, and organizing resources in an organization to achieve its objectives efficiently and effectively.

Ownership

The legal right to possess, use, and dispose of something; typically refers to property or assets.

Sales

The exchange of goods or services for money, constituting the primary revenue stream for most businesses.

Family Businesses

Businesses owned and operated by multiple generations of a family, often characterized by personal relationships and traditions.