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Indirect expenses were to be distributed over the various jobs as a percentage of wages paid or prime cost .
According to Wright, the development of scientific costing systems in Britain can be traced back to the work of John Walker, who developed a system of allocating overheads based on prime costs .
The last two years saw a sharp price rise in fuels, which account for some 80 per cent of the prime cost of central heating.
Clear criteria will be introduced for charging VAT for goods and services that are sold below their prime cost .
In a document called ‘Report for 1943 Renegotiation ’, Sperry called it company ‘policy’ to lower the prices of its products when manufacturing experience, reflected by reduced prime costs , was gained.
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