alleryStart learning →Direct materials plus direct labour together are called:
APrime costs
BStep costs
CPeriod costs
DSunk costs
Answer & Solution
Correct answer: A. Prime costs
1. Only the two direct costs are combined.
2. Overhead is left out.
3. They are prime costs.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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