Which of the Following Is a Prime Cost and a Conversion

question 228

Multiple Choice

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

• A) manufacturing overhead
• B) direct materials
• C) direct labor
• D) selling expenses

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Definitions:

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish the defendant for particularly harmful behavior.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, to induce another party to enter into a contract.

Undue Influence

The excessive pressure or influence by one person over another, leading to decisions or actions that do not reflect the true intentions of the influenced party.

Shared Mistake

The same mistake made by both parties to a contract.