LCM of two numbers

Prime Cost Calculator

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Important Formulas of Cost Accounting

✖Direct Materials Cost is the expense of raw materials that are directly used in the manufacturing of a product.ⓘ Direct Materials Cost [DMC]			+10% -10%
✖Direct Labour Cost is the expense of wages for workers who are directly involved in the production of goods.ⓘ Direct Labour Cost [DLC]			+10% -10%

✖Prime Cost is the total of direct materials and direct labor costs used in production.ⓘ Prime Cost [C_Prime]

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Prime Cost Solution

STEP 0: Pre-Calculation Summary

Formula Used

Prime Cost = Direct Materials Cost+Direct Labour Cost
C_Prime = DMC+DLC
This formula uses 3 Variables

Variables Used

Prime Cost - Prime Cost is the total of direct materials and direct labor costs used in production.
Direct Materials Cost - Direct Materials Cost is the expense of raw materials that are directly used in the manufacturing of a product.
Direct Labour Cost - Direct Labour Cost is the expense of wages for workers who are directly involved in the production of goods.

STEP 1: Convert Input(s) to Base Unit

Direct Materials Cost: 1000 --> No Conversion Required
Direct Labour Cost: 600 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

C_Prime = DMC+DLC --> 1000+600

Evaluating ... ...

C_Prime = 1600

STEP 3: Convert Result to Output's Unit

1600 --> No Conversion Required

FINAL ANSWER

1600 <-- Prime Cost

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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Prime Cost Formula

LaTeX Go

Prime Cost = Direct Materials Cost+Direct Labour Cost
C_Prime = DMC+DLC

What is Prime Cost ?

Prime cost refers to the combined total of direct materials and direct labor costs that are directly attributable to the production of goods. Direct materials are the raw materials that are essential and can be directly traced to the finished product, while direct labor involves the wages paid to workers who are directly involved in the manufacturing process. Prime cost is a key metric in cost accounting as it helps businesses determine the efficiency and cost-effectiveness of their production processes by focusing on the primary inputs required to create a product. By analyzing prime costs, companies can better manage and control these expenses, ultimately improving their overall profitability and competitiveness.

How to Calculate Prime Cost?

Prime Cost calculator uses Prime Cost = Direct Materials Cost+Direct Labour Cost to calculate the Prime Cost, The Prime Cost is the sum of direct materials and direct labor costs incurred in production. Prime Cost is denoted by C_Prime symbol.

How to calculate Prime Cost using this online calculator? To use this online calculator for Prime Cost, enter Direct Materials Cost (DMC) & Direct Labour Cost (DLC) and hit the calculate button. Here is how the Prime Cost calculation can be explained with given input values -> 1600 = 1000+600.

FAQ

What is Prime Cost?

The Prime Cost is the sum of direct materials and direct labor costs incurred in production and is represented as C_Prime = DMC+DLC or Prime Cost = Direct Materials Cost+Direct Labour Cost. Direct Materials Cost is the expense of raw materials that are directly used in the manufacturing of a product & Direct Labour Cost is the expense of wages for workers who are directly involved in the production of goods.

How to calculate Prime Cost?

The Prime Cost is the sum of direct materials and direct labor costs incurred in production is calculated using Prime Cost = Direct Materials Cost+Direct Labour Cost. To calculate Prime Cost, you need Direct Materials Cost (DMC) & Direct Labour Cost (DLC). With our tool, you need to enter the respective value for Direct Materials Cost & Direct Labour Cost and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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