Prime cost is one of the following

A Expenses which can be identified with an allocated to cost centers
B Aggregate direct material cost, direct labour cost and variable direct expenses
C The cost taken into account in the production process whether direct or indirect
D The cost of commodities supply to an undertaking

Correct Answer: Option B

Explanation:
prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.