1

The cost of direct materials is classified as a: Conversion cost Prime cost A) No No...

Question

The cost of direct materials is classified as a: Conversion cost Prime cost A) No No...

The cost of direct materials is classified as a:

Conversion cost Prime cost
A) No No
B) Yes No
C) No Yes
D) Yes Yes

Choice D

Choice A

Choice C

Choice B

Answers

Prime cost=Direct materials+Direct labor

whereas

Conversion cost=Direct labor+Manufacturing overhead

Hence cost of direct materials is classified as a Prime cost

Hence the correct option is:

Choice C


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