Direct materials plus direct labour together are known as:
APrior costs
BPublic costs
CProxy costs
DPrime costs
Answer & Solution
Correct answer: D. Prime costs
1. Both are traced straight to the product with no allocation.
2. They are the primary or direct product costs.
3. Together they are the prime costs.
_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
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