Direct Labor Is a Part of Prime Cost, but Not

question 167

True/False

Direct labor is a part of prime cost, but not conversion cost.

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Definitions:

Check Register

A record kept to track written checks, deposits, and withdrawals in a checking account, aiding in account reconciliation and financial management.

Stock Purchases Register

A ledger or record keeping log for tracking all purchases of stock inventory over a period.

Voucher System

An accounting system used to authorize and record transactions such as purchases or sales.

Purchases Journal

A record of all purchases of goods and services on credit, aimed at simplifying the accounting process.