Question

The costs of direct materials are classified as: Conversion cost Manufacturing cost Prime cost A) Yes Yes Yes B) No No No C) Yes Yes No D) No Yes Yes

Answer 1

Answer:

D

Explanation:

Because conversion cost does not have direct materials

Answer 2

Answer:

D) No Yes Yes

Explanation:

As we know that

The conversion cost includes the direct labor cost and the manufacturing overhead cost

And, the manufacturing cost records the  

= Cost of direct material cost + Direct labor cost + Manufacturing Overhead cost

And, the prime cost includes the direct material cost and the direct labor cost that is directly related to the production process of the product.