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18 October, 20:55

Direct labor cost is classified as: Conversion cost Prime Cost A) Yes Yes B) No No C) No Yes D) Yes No Choice A Choice B Choice C Choice D

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  1. 18 October, 21:06
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    A) Yes Yes

    Explanation:

    The prime cost is the cost that includes both the direct material cost and the direct labor cost

    In mathematically,

    Prime cost = Direct material cost + Direct labor cost

    While the conversion cost is the cost that includes the direct labor cost and the manufacturing overhead cost

    In mathematically,

    Conversion cost = Direct labor cost + Manufacturing overhead cost
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