'Total manufacturing costs' consists of which of the following?
A)Direct manufacturing labour costs + conversion costs
B)Direct materials + conversion costs
C)Direct materials + prime costs
D)Direct manufacturing labour costs + prime costs

Question

Quizplus · Accepted Answer

Total manufacturing costs include all the costs incurred in the production of goods, including direct materials, direct manufacturing labor costs, and conversion costs (which include indirect manufacturing costs such as rent, utilities, and depreciation). Prime costs only include direct materials and direct manufacturing labor costs, while option D includes both prime costs and direct manufacturing labor costs. Therefore, option B is the best choice.

'Total Manufacturing Costs' Consists of Which of the Following