prime cost (english) - meaning, definition, translation, pronunciation

Part of Speech

Noun

Phonetic Transcription

/ˈpraɪm kɔst/

Meaning

Prime cost refers to the direct costs incurred in the production of goods or services. It typically includes direct materials and direct labor but excludes indirect costs such as overhead or administrative expenses. Prime cost is an essential metric in managerial accounting, used by businesses to determine pricing and profitability.

Usage

The term "prime cost" is used primarily in written contexts, such as financial reports and academic literature, particularly in accounting and economics. It is less frequently used in everyday oral speech, as it pertains specifically to business and financial discussions.

Example Sentences

1. The restaurant calculated its prime cost to evaluate its profitability.

2. Ресторан рассчитали свои основные затраты, чтобы оценить свою прибыльность.

3. Understanding prime cost is critical for manufacturers to set competitive prices.

4. Понимание основных затрат критично для производителей, чтобы установить конкурентоспособные цены.

5. The accountant advised the business owner to reduce prime cost to improve margins.

6. Бухгалтер посоветовал владельцу бизнеса сократить основные затраты для увеличения маржи.

Idiomatic Expressions

Although "prime cost" is a specific term largely used in accounting, it does appear in contexts that discuss financial performance and cost management. Here are some idiomatic expressions related to costs:

1. Cutting prime cost:
2. The CFO proposed cutting prime cost to boost the company’s financial performance.

3. Финансовый директор предложил сократить основные затраты для улучшения финансовых показателей компании.

4. Blurred line of prime cost:

5. Sometimes, the blurred line of prime cost makes it challenging to allocate expenses accurately.

6. Иногда неясная граница основных затрат затрудняет точное распределение расходов.

7. Prime cost analysis:

8. A thorough prime cost analysis revealed areas for operational efficiency improvements.

9. Тщательный анализ основных затрат выявил области для повышения операционной эффективности.

10. Tracking prime cost:

11. Tracking prime cost is essential for any business wanting to maintain profitability.
12. Учет основных затрат имеет решающее значение для любого бизнеса, который хочет сохранить прибыльность.

Etymology

The term "prime cost" comes from the combination of the word "prime," meaning fundamental or primary, and "cost," referring to the expense incurred in the production of goods or services. The term has been used in business and finance since at least the early 20th century.

Synonyms and Antonyms

Synonyms: - Direct cost - Production cost - Manufacturing cost

Antonyms: - Indirect cost - Overhead cost - Fixed cost

This comprehensive breakdown provides insight into the term "prime cost," illustrating its relevance in financial discussions and business operations.