Non Cash Expenses

When expenses occurred without any cash flow then those expenses are termed as “Non Cash Expenses”. For example, asset depreciation; depreciation is an automated & fix expenses charged to be every month with a particular depreciate percentage but for this no cash outflow occurred at the particular period as it occurred at the time of asset purchase.

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Prime Cost

prime costs are directly related to production costs. These costs are consumed during the production process. It includes the labor cost and raw material cost as raw material and labor are the prime inputs in manufacturing a product.

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