Manufacturing Accounts Flashcards

1
Q

Define Prime Cost

A

Items of expenditure directly related to acquiring the raw materials and converting them into a finished Product

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2
Q

Give some Prime Cost expenditure examples

A

Raw Material Purchase
Opening Stock Raw Materials
Closing Stock Raw Materials
Labour involved at this stage

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3
Q

What is production cost

A

Comprises prime cost plus any relevant factory or works overhead expenses

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