🎴 Flashcard Mode
Commerce and Management
Card1 / 25
Mastered0
Review0
QuestionClick to flip
Directions: Choose the correct option for the given question.
The sum of direct materials and direct labour costs is called
AnswerClick to flip back
A
Prime Cost
💡 Explanation:
Prime Cost is defined as the sum of direct materials cost and direct labour cost. This is a standard cost accounting concept. Factory Cost includes additional overheads, Overhead Cost refers to indirect costs, and Value of Stock refers to inventory valuation.