prime cost Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: prime cost
Dictionary of Accounting Terms
prime cost

in manufacturing, direct material plus direct labor . It excludes overhead.

See also conversion cost
Dictionary of Business Terms
prime cost
See also direct cost
Related Terms:
conversion cost

sum of the costs ofdirect laborandfactory overhead.

direct cost

expenses that can be directly identified with the costing object such as a product and department. Examples are direct materials, direct labor, and advertising outlays made directly to a particular sales territory.

Referring Terms:
conversion cost
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