Definition Prime Cost: A One-Page Operator Reference If you need a working definition prime cost you can run on Monday morning, use this: prime cost is the sum of cost of goods sold plus total labor cost, expressed as a percentage of sales. It is the two biggest variable spends you can still influence after the doors open. Rent is not in it. Marketing is not in it. Loan payments are not in it.
The Formula
Prime cost % = (COGS + total labor) /...
Join our community to interact with posts!