prime cost

American  

noun

1. that part of the cost of a commodity deriving from the labor and materials directly utilized in its manufacture.

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prime cost British  

noun

1. Also called: variable cost.  the portion of the cost of a commodity that varies directly with the amount of it produced, principally comprising materials and labour Compare overheads

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Etymology

Origin of prime cost

First recorded in 1710–20

Example Sentences

Labor is indeed a prime cost factor in an industry that has never been able to mechanize to any great extent.

From Time Magazine Archive

The prime cost of a dozen-case, each bottle containing about a quart, fitted with wooden divisions and packed with husks, chaff, or sawdust, is 3_s_.

From To The Gold Coast for Gold, Vol. II A Personal Narrative by Burton, Richard Francis, Sir

According to himself, his handbills, and his advertisements, everything contained in that shop was so very much under prime cost, that the more he sold the sooner he must be ruined.

From Mr. Joseph Hanson, The Haberdasher by Mitford, Mary Russell

Even if the prime cost be higher than that of ordinary market stock the extra outlay expended on animals from well-known breeders, and out of old established herds, is certain to prove a good investment.

From The Pig Breeding, Rearing, and Marketing by Spencer, Sanders

They thus get these better freights and a large number of immigrants, which with small interest on prime cost enables them to live.

From Ocean Steam Navigation and the Ocean Post by Rainey, Thomas