Which of the Following Costs Is Both a Prime Cost

question 151

Multiple Choice

Which of the following costs is both a prime cost and a conversion cost?

• A) direct materials
• B) direct labor
• C) manufacturing overhead
• D) administrative costs

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Definitions:

UCC

The Uniform Commercial Code represents an extensive collection of statutes that regulate business dealings in the United States.

Requirement

A condition or qualification that must be met or complied with, such as a rule, standard, or specification.

Exceptions

Specific conditions or cases for which the general rule does not apply.

Firm Offers

In contract law, promises made by a seller to hold an offer open to a buyer for a certain period without requiring consideration.