Direct labor cost is a part of:

Question

Conversion cost Prime cost

A) No No

B) No Yes

C) Yes Yes

D) Yes No

Muhammad Sarmad Akram · Answer

Its C direct labour fall both in conversion cost and prime cost

islam ahmed · Answer

Prime cost= D.L+D.M

Conversion cost= D.L + FOH

so its (C)

FITAH MOHAMED · Answer

Conversion cost Prime cost

B) No Yes

Lesley Lanag CMA CPA · Answer

C.  Conversion cost and prime cost.

Hasan Tariq · Answer

C, because Direct material cost and Direct labor cost makes conversion cost. and If FOH is added in the said2 costs then they will make prime cost

Fawzy Ahmed Salim El-Shabiby · Answer

Answer: (c) conversion cost & Prime cost

Mir Mujtaba Ali · Answer

I would opt

C) Yes Yes

AZHAR NAWAZ · Answer

Labor cost is part of Conversion Cost and also Prime Cost (Option C is Correct)

SOEB MANSURI · Answer

Direct labor cost is a component of prime cost with direct material cost and a component of conversion cost with manufacturing overhead .

mohamed Hakim CMA CPA Candidate · Answer

Answer B

NO conversion , yes prime cost

Imran Ahmed Mirza · Answer

Direct labor cost is the part of both Conversion and Prime Cost.