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<p><em><strong>A. A variable cost. </strong></em></p> <p><em><strong>B. An indirect cost. </strong></em></p> <p><em><strong>C. A conversion cost. </strong></em></p> <p><em><strong>D. A prime cost.</strong></em></p>
D. A prime cost.
prime cost it will be,,,,,,,
D.
Ans A & D Variable and Prime Cost.
A. A variable cost. cost object my be a service or physical product, so the cost that can be traced to the cost object is in producing or serving one more cost object. Prime costs can be treated also as a variable cost.
