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:

Allocating Resources

The process of distributing available assets and resources among various projects, departments, or units to achieve organizational goals effectively.

Informational Roles

Roles that involve the processing and dissemination of information, crucial for decision making and organizational coordination.

Figurehead

A person who holds a title or office but has little real power or authority, often serving a symbolic role.

Liaison

A person or role that acts as a link to assist in communication or cooperation between groups or individuals.