Which of the following costs consists only of all direct manufacturing costs?
A)Conversion
B)Fixed
C)Variable
D)Prime

Question

Quizplus · Accepted Answer

Prime costs consist only of all direct manufacturing costs, including direct materials and direct labor. Conversion costs, on the other hand, include both direct manufacturing costs and indirect manufacturing costs such as factory rent, utilities, and maintenance. Fixed costs and variable costs are not specific to manufacturing and can apply to various types of costs in a business.

Which of the Following Costs Consists Only of All Direct