Which of the following is a prime cost and a conversion cost?
A) manufacturing overhead
B) direct materials
C) direct labor
D) selling expenses

Question

Quizplus · Accepted Answer

Direct labor is considered both a prime cost and a conversion cost. Prime costs include direct materials and direct labor, costs directly associated with the production of goods. Conversion costs include direct labor and manufacturing overhead, costs incurred to convert materials into the finished product.

Which of the Following Is a Prime Cost and a Conversion