Vidyalelo
Commerce · Q289

Costing

Graduate and Post Graduate · Commerce · question 289

Q289

In cost terms, direct manufacturing labour cost is included in

A.
manufacturing costs
B.
prime costs
C.
conversion costs
D.
both B and C
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In cost terms, direct manufacturing labour cost is included in prime costs and conversion costs. Direct labor cost is the total cost of employing workers that work directly on a manufacturing product.