What Is the Term for the Sum of Direct Labour

question 134

Multiple Choice

What is the term for the sum of direct labour and factory overhead?

• A)period costs
• B)conversion costs
• C)prime costs
• D)direct product costs

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Definitions:

Purchasing Department

The division within an organization responsible for acquiring goods, services, and equipment necessary for its operations.

Weighted Average Cost Flow Assumption

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items available during the period.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced items are recorded as sold first.

FIFO

An inventory valuation method where the first items produced or purchased are the first used or sold.