The total of all direct expenses is known as . . . . . . . . cost.

prime
works
production
Both A and B

The correct answer is: Both A and B.

Prime cost is the total of direct material cost and direct labor cost. It is the cost of

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the materials and labor that are directly involved in the production of a product.

Works cost is the total of prime cost and indirect cost. Indirect cost is the cost of production that is not directly involved in the production of a product, such as factory overhead and administrative costs.

Therefore, the total of all direct expenses is known as prime cost and works cost.

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