The components of prime costs in the three-part classification include
A) only direct materials costs.
B) only direct manufacturing labour costs.
C) both direct materials and direct manufacturing labour costs.
D) only conversion costs.
E) direct materials, direct manufacturing labour and conversion costs.

Question

Quizplus · Accepted Answer

Prime costs consist of both direct materials and direct manufacturing labour costs.

The Components of Prime Costs in the Three-Part Classification Include