CIMA P1 Syllabus A. Cost Accounting For Decision And Control - Cost Classification - Notes ^{1 / 7}

Prime Cost

is made up of...

1. Direct Materials +

2. Direct labour +

3. Direct expenses

Overheads

are

1. Indirect Material +

2. Indirect Labour +

3. Indirect Expenses

TOTAL PRODUCTION COST = PRIME COST + OVERHEADS

TOTAL COSTS = TOTAL PRODUCTION COSTS + NON-PRODUCTION COSTS