Asked by
tommy whitty
on Nov 18, 2024Verified
Direct labor costs are included in the conversion costs of a product.
Direct Labor Costs
Direct labor costs are the wages paid to employees who are directly involved in the production of goods or services.
Conversion Costs
Conversion costs are expenses incurred during the process of converting raw materials into finished products, including both direct labor and manufacturing overhead.
- Distinguish between the concepts of prime costs and conversion costs.
Verified Answer
AM
Learning Objectives
- Distinguish between the concepts of prime costs and conversion costs.