Prime cost, abbreviated as P, is any expenditure that directly relates to the production of finished goods.
prime cost Formula |
| P=RMP+DL |
| Symbol |
| P = prime cost |
| DL = direct labor cost |
| RMP = raw material price |
Prime cost, abbreviated as P, is any expenditure that directly relates to the production of finished goods.
prime cost Formula |
| P=RMP+DL |
| Symbol |
| P = prime cost |
| DL = direct labor cost |
| RMP = raw material price |