Asked by
Aylin Silva
on Nov 17, 2024
Verified
Manufacturers use machinery and labor to convert direct materials into finished products.
Direct Materials
Raw materials that can be directly traced to the production of a specific product and are a significant portion of the production cost.
- Differentiate between the notions of prime costs and conversion costs.
Verified Answer
AM
Learning Objectives
- Differentiate between the notions of prime costs and conversion costs.