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29 August, 11:35

The costs of direct materials are classified as: Conversion cost Manufacturing cost Prime cost A) Yes Yes Yes B) No No No C) Yes Yes No D) No Yes Yes

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Answers (2)
  1. 29 August, 11:54
    0
    D

    Explanation:

    Because conversion cost does not have direct materials
  2. 29 August, 12:01
    0
    D) No Yes Yes

    Explanation:

    As we know that

    The conversion cost includes the direct labor cost and the manufacturing overhead cost

    And, the manufacturing cost records the

    = Cost of direct material cost + Direct labor cost + Manufacturing Overhead cost

    And, the prime cost includes the direct material cost and the direct labor cost that is directly related to the production process of the product.
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