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What is the difference between prime costs & conversion costs, and how are they calculated?

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Question ajoutée par Huda Adam , Faculty of Commerce Graduate , Cairo University
Date de publication: 2015/11/21
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par Utilisateur supprimé

Prime costs = direct material + direct labor .

Conversion costs = manufacturing overhead + direct labor 

Prime cost is aggregate of direct material, direct labour, direct expenses related to maufacturing but conversion cost is only cost involved to convert direct materials into product i.e sum of labour cost and manufacturing cost.

 

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