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prime cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › prime cost

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.
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  • May 29, 2014 at 12:13 pm #171631
    josy87
    Member
    • Topics: 173
    • Replies: 215
    • ☆☆☆

    Dear Sir john
    please I need help with costs
    I would like to know the difference between direct cost and direct expense.
    And also know if directs expenses are include in the prime cost.
    thanks

    May 29, 2014 at 7:19 pm #171731
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Direct cost and direct expense means the same thing – they are costs that can be specifically measured in each unit (most times that is just labour and materials).

    The prime cost is the total of the direct costs.

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