Which of the following represents the combined sum of direct materials and direct labor?
A) conversion costs
B) period costs
C) prime costs
D) fixed costs

Question

Quizplus · Accepted Answer

Prime costs are the sum of direct materials and direct labor, which are the costs directly associated with the production of a good or service. Option A (conversion costs) would include both direct labor and indirect manufacturing costs (such as factory overhead), while option B (period costs) includes all costs not directly related to production (such as selling and administrative expenses). Option D (fixed costs) refers to costs that do not change regardless of the level of production.

Which of the Following Represents the Combined Sum of Direct