Asked by
Allison Palmarin
on Nov 17, 2024Verified
Prime costs are the combination of direct labor costs and factory overhead costs.
Prime Costs
The direct costs of manufacturing an item, which typically include direct labor and direct materials.
Factory Overhead Costs
Costs incurred from running a manufacturing plant that cannot be directly associated with any particular product, such as utilities, depreciation, and maintenance expenses.
- Identify the distinctions between prime costs and conversion costs.
Verified Answer
FS
Learning Objectives
- Identify the distinctions between prime costs and conversion costs.