Manufacturing Cost Definition
Manufacturing Cost Definition:
Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost.
Formula of prime cost can be written as: Prime cost = Direct materials + Direct labor
Relevant terms:
Other Related Accounting Articles:
- Multiple Predetermined Overhead Rates Definition
- Financial Leverage
- Capital Budgeting: The Net Present Value
- How to record Intangible Assets of a Business
- Least Cost Decisions
- Incremental Cash Flow Analysis
- Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis
- Turn Over Rate Calculation
- Types of Capacity
- Activity Based Management
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