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Job Prime Costs

Prime costs are cost directly related to the materials and labor used. It refers to a manufactured product's costs, which are calculated to ensure the best profit margin for a company. The prime cost calculates the direct costs of raw materials and labor, but does not factor in indirect expenses, such as advertising and administrative costs.

Allowed: What we want to spend
Actual: What we did spend
Over: Overrun (Actual - Allowed)
Client Paid: What cash we have spent
Liability: Still to be paid (Over - Client Paid)