Meaning of the word "prime cost" in English
What does "prime cost" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
prime cost
US /ˈpraɪm ˌkɑst/
UK /ˈpraɪm ˌkɒst/
Noun
the direct cost of a commodity in terms of the materials and labor involved in its production, excluding fixed costs
Example:
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Calculating the prime cost is essential for setting competitive prices.
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The company aims to reduce its prime cost by optimizing production processes.
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