The costs of direct materials are classified as:
$\begin{array} { ccc}
& \text { Conversion cost } & \text { Manufacturing cost } & \text { Prime cost } \\end{array}$
A. $\begin{array} { ccc} &&& \text { Yes } &&&&&& \text { Yes } &&&&&&& \text { Yes } \\end{array}$
B. $\begin{array} { ccc} &&& \text { No } &&&&&&& \text { No } &&&&&&& \text { No } \\end{array}$
C. $\begin{array} { ccc} &&& \text { Yes } &&&&&& \text { Yes } &&&&&&& \text { No } \\end{array}$
D. $\begin{array} { ccc} &&& \text { No } &&&&&& \text { Yes } &&&&&&& \text { Yes } \
\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

The costs of direct materials are classified as:
$\begin{array} { ccc} 
& \text { Conversion cost } & \text { Manufacturing cost } & \text { Prime cost } \\end{array}$
A. $\begin{array} { ccc} &&& \text { Yes } &&&&&& \text { Yes } &&&&&&&  \text { Yes } \\end{array}$
B. $\begin{array} { ccc}  &&& \text { No } &&&&&&& \text { No } &&&&&&& \text { No } \\end{array}$
C. $\begin{array} { ccc}  &&& \text { Yes } &&&&&& \text { Yes } &&&&&&& \text { No } \\end{array}$
D. $\begin{array} { ccc}  &&& \text { No } &&&&&& \text { Yes } &&&&&&& \text { Yes } \
\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D

Quizplus · Accepted Answer

Direct materials are part of manufacturing costs and prime costs, but not conversion costs.

The Costs of Direct Materials Are Classified As Conversion cost Manufacturing cost Prime cost \begin{array} { ccc} & \text { Conversion cost } & \text { Manufacturing cost } & \text { Prime cost } \\\end{array}​ Conversion cost ​ Manufacturing cost ​ Prime cost ​

The Costs of Direct Materials Are Classified As $\begin{array} { ccc} & \text { Conversion cost } & \text { Manufacturing cost } & \text { Prime cost } \\\end{array}$