Lo 4.1which of the following is a prime cost?

indirect materials
direct labor
administrative expenses
factory depreciation expenses

option B                  

Explanation:

Prime costs refers to the expenses of a company directly linked to the labor and materials used during manufacturing. This relates to the expense of a product made, which is measured to provide a business with the highest profit margin.

A prime cost is really the cumulative direct costs of producing a commodity for sale, which can be constant or adjustable. Companies utilize prime costs as more of a method of measuring the overall cost of the development materials required to create a specific output.

Thus, from the above we can conclude that the correct option is B .