- that part of the cost of a commodity deriving from the labor and materials directly utilized in its manufacture.
Origin of prime cost
First recorded in 1710–20
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018
- the portion of the cost of a commodity that varies directly with the amount of it produced, principally comprising materials and labourAlso called: variable cost Compare overheads