Which of the following is not a prime cost?Supervisor's wagesO Direct labor wagesO Assembly line wagesMachine operator wages

Answered: Which of the following is not a prime…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 3MC: Which of the following is a prime cost? A. direct labor B. work in process inventory C....

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Which of the following is not a prime cost?
Supervisor's wages
O Direct labor wages
O Assembly line wages
Machine operator wages

Expert Solution

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Prime costs is a company’s expenses which is directly related to the production process like the materials and labor expenses. It refers to a manufactured product's costs. The total Cost for production is differentiated into various parts so that the company can get a clear view of its expenses and ensure best profit margin. The prime cost includes the direct costs of raw materials and labor that are involved in the production of the company’s goods and services. Direct costs do not include indirect expenses, such as advertising and administrative costs.

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