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What is the difference between prime costs and conversion costs?

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Question ajoutée par azaharuddin sirajuddin , Office Assistant , Drol International Gen Con LLC
Date de publication: 2016/03/20
Mahmoud Zaher Tarakji
par Mahmoud Zaher Tarakji , مدير , أوال جاليري

I agree with MR FAZLUR RAHMAN

Md Fazlur Rahman
par Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

These two type of cost are defined as follows:

Prime Cost: Total cost of acquiring a raw material or semi-finished goods form market for further processing

 

Conversion cost: Cost of converting a raw material or semi-finished goods to a useful and salable product. The cost of overhead, labor and additional materials are included in conversion cost

Emad Mohammed said abdalla
par Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

i fully agree with the answers been added by experts..........thanks.

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

Full Agree with answer given by mr. Md. Fazlur Rahman 

 

Bassam Harati
par Bassam Harati , team leader , property shop investment

The three cost categories associated with manufacturing a product.

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