Cryptocurrency Q&A
What is Prime cost or cost price?
What is Prime cost or cost price?
CryptoPioneer
Mon Nov 04 2024
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5 answers
1020
I'm trying to understand the concept of Prime cost or cost price. Could someone explain what it is and how it's calculated? I'm particularly interested in its application in business and financial decision-making.
5 answers
WhisperInfinity
Wed Nov 06 2024
Prime cost represents the cumulative direct expenses incurred during production.
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Federico
Wed Nov 06 2024
It primarily encompasses the expenses related to raw materials, which serve as the foundational components of any product.
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Maria
Wed Nov 06 2024
In addition to raw materials, prime cost also includes the labor costs directly involved in the production process.
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CryptoChieftain
Wed Nov 06 2024
Conversely, indirect costs like utilities, managerial salaries, and delivery expenses are excluded from prime cost calculations.
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CryptoAlchemy
Wed Nov 06 2024
To determine the prime cost, one simply adds the cost of raw materials to the direct labor expenses.
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