a. Explain what you understand by the term 'Prime Cost'. 

b. Sketch a graph that depicts the following types of costs. i. Variable costs. ii. Fixed costs iii. Stepped costs iv. Total cost 

c. Describe the following types of costs as used in cost accounting studies 

a. Conversion cost  

b. Opportunity cost 

c. Sunk cost  

d. Committed cost

Answer rating: 100% (QA)

a Prime Cost Prime cost refers to the direct costs involved in the production of goods or services These costs typically include the cost of raw mater... View the full answer