Prime Cost

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Dictionary Says

Definition of 'Prime Cost'

A business’s expenses for the materials and labor it uses in production. Prime cost is a way of measuring the total cost of the production inputs needed to create a given output. By analyzing its prime costs, a company can determine how much it must charge for its finished product in order to make a profit. By lowering its prime costs, a company can increase its profit margin and/or undercut its competitors’ prices.
Investopedia Says

Investopedia explains 'Prime Cost'

For example, the prime costs for creating a can of soda would include raw materials such as the aluminum needed for the cans, ink to customize the cans with the product’s brand name and logo, soda ingredients (i.e. carbonated water, caramel coloring, caffeine, sugar or aspartame and preservatives), freight charges to transport the raw materials to the manufacturing plant and the wages, taxes and benefits paid to or on behalf of the employees involved in the soda manufacturing process.
Search results for

'Prime Cost'

  • Consider Prime Rate Funds For More Income

    http://www.investopedia.com/articles/mutualfund/08/prime-rate-funds.asp
    ... Another potential cost is that, while these funds seek to maintain a steady ... Remember,
    the loans purchased by prime-rate funds are backed by collateral, unlike ...

  • Prime Picks In Pipelines

    http://stocks.investopedia.com/stock-analysis/2011/Prime-Picks-In-Pipelines-AMLP-SRV-ENB-EEP-EPD-EPB1017.aspx
    ... Prime Picks In Pipelines. ... When oil fell from $145 down to $40, many E&P firms were
    hit hard as the price of oil no longer covered the cost of production. ...

  • Pall And The High Cost Of Excellence

    http://stocks.investopedia.com/stock-analysis/2011/Pall-And-The-High-Cost-Of-Excellence-PLL-GE-CLC-BA1213.aspx
    ... Pall And The High Cost Of Excellence. ... The Challenge is Clear - Lift Industrial Margins
    One of the prime directives for the new CEO of Pall is to improve margins ...

  • Getting A Grip On The Cost Of Gas

    http://www.investopedia.com/articles/pf/05/gascrisisplan.asp
    Getting A Grip On The Cost Of Gas. ... In this article, we'll outline a few methods to
    help you minimize the seemingly unavoidable cost of fueling up. ...

  • The Cost Of Variable Annuity Guarantees

    http://www.investopedia.com/articles/pf/06/variableannuity.asp
    The Cost Of Variable Annuity Guarantees. ... Find out exactly what each benefit will
    cost - if a company or agent can't or won't tell you, go to another one. ...

  • Take Advantage Of Dollar-Cost Averaging

    http://www.investopedia.com/articles/01/090501.asp
    Take Advantage Of Dollar-Cost Averaging. September ... important. (Learn more,
    in Dollar-Cost Averaging With ETFs.) What is the Bottom? ...

  • The Cost And Consequences Of Bad Investment Advice

    http://www.investopedia.com/articles/pf/08/bad-investment-advice.asp
    The Cost And Consequences Of Bad Investment Advice. ... Buying a hot stock provides
    an illusion of easy money, but it can come with a cost. ...

  • 6 Ways To Save On Fall Maintenance - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1010/6-Ways-To-Save-On-Fall-Maintenance.aspx
    ... parts cost less than the kits. Insulating pipes is a prime example of
    a miniscule investment to save a major repair cost later. ...

  • Wheels Of A Future Fortune

    http://www.investopedia.com/articles/pf/07/buying_cars.asp
    ... Should You Take The Bait?) Insurance The "sexiest" cars are far more expensive to
    insure because they're prime theft targets and cost more to repair. ...

  • Amazon's On Fire

    http://stocks.investopedia.com/stock-analysis/2011/Amazons-On-Fire-AMZN-NFLX-RIMM-HPQ-MMI-BKS1003.aspx
    ... Munster believes that this loss per device could potentially cost Amazon 10% to
    20 ... many of its other products, such as its cloud service, Amazon Prime, as well ...

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