Which of the following costs is classified as both a prime cost and a conversion cost?
A) Direct materials.
B) Direct labor.
C) Variable overhead.
D) Fixed overhead.

Question

Quizplus · Accepted Answer

Direct labor is considered both a prime cost and a conversion cost because it is directly involved in the production of goods and is necessary to convert raw materials into finished products.

Which of the Following Costs Is Classified as Both a Prime