Answered: In cost terms, direct labor cost is…

In cost terms, direct labor cost is included in A. Manufacturing costs B. Prime costs C. Conversion costs D. B and C E. A, B and C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

In cost terms, direct labor cost is included in

A. Manufacturing costs
B. Prime costs
C. Conversion costs
D. B and C
E. A, B and C

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