Which of the Following Is Both a Prime Cost and a Conversion

question 96

Multiple Choice

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

• A)Manufacturing overhead
• B)Direct materials
• C)Direct labor
• D)Selling expenses

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Definitions:

Assembling Product

The process of combining components or parts to build a complete product.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, widely used in statistical analysis.

Random Variable

A variable whose numerical values stem from unpredictable phenomena.