1. Direct materials 11.Direct labour 111.Direct expenses 1V. Factory expensesPrime cost consist of

Answer Details

Prime cost refers to the direct costs involved in producing a product or delivering a service. It includes the costs of the raw materials, direct labor, and direct expenses necessary to create the product. In this case, the prime cost would consist of: - Direct materials (1) - Direct labor (11) - Direct expenses (111) Therefore, the prime cost would consist of items 1, 11, and 111. Factory expenses (1V) are indirect expenses, not included in the prime cost.