In the cost classification system used by manufacturing firms,assembly workers' wages would be included in all of the following EXCEPT:
A)period cost.
B)product cost.
C)conversion cost.
D)prime cost.

Question

Quizplus · Accepted Answer

Assembly workers' wages are a direct cost of production and are therefore included in product cost, which is the cost of manufacturing a product. Assembly workers' wages are also considered a conversion cost, which is the sum of direct labor and overhead costs incurred to convert raw materials into finished products. However, assembly workers' wages are not a part of prime cost, which is the sum of direct materials and direct labor costs. Furthermore, assembly workers' wages are not a period cost, which is a cost that is not directly related to the production process, such as selling, general, and administrative expenses.

In the Cost Classification System Used by Manufacturing Firms,assembly Workers