Prime Cost in Accounting: Definition & Formula

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What are prime costs?

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1. What is the formula for calculating prime costs?

2. Mia spent $500 on material to make 100 scarves and paid her best friends a total of $250 to help make the scarves. What is the prime cost?

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About This Quiz & Worksheet

You will find that this quiz was written to test what you know about prime cost in accounting. Most questions will involve you finding the solution to problems that involve this topic.

Quiz & Worksheet Goals

Ensure that you can successfully find the answers to questions that deal with:

  • Prime cost's definition
  • The formula for prime cost
  • Using mathematics to find prime cost

Skills Practiced

Questions on this quiz afford you the chance to practice various skills that include:

  • Reading comprehension - ensure that you draw the most important information from the related lesson on prime cost in accounting
  • Problem solving - use acquired knowledge to calculate the prime cost in practice problems
  • Knowledge application - use your knowledge to answer a question about break-even prices

Additional Learning

Prepare yourself to learn more about this subject with the lesson that goes along with this quiz, titled Prime Cost in Accounting: Definition & Formula. With this lesson, you can count on learning about:

  • Components of the prime cost formula
  • Examples of the formula in use
  • The importance of prime cost
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