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Should Direct Materials Be Classified as a Part of Any

Question 3

Multiple Choice

Should direct materials be classified as a part of any or all of the following: conversion cost, manufacturing cost, and prime cost?


A) Conversion cost and manufacturing cost.
B) Conversion cost and prime cost.
C) Manufacturing cost and prime cost.
D) Conversion cost, manufacturing cost, and prime cost.
E) Conversion cost only.

Correct Answer:

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