Sprinkles for decoration (indirect material)

A) Prime costs
B) Conversion costs
C) Both prime and conversion costs
D) Neither prime nor conversion costs

Sprinkles

Small pieces of confectionery used as a decoration or to add texture to desserts.

Indirect Material

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and cleaning supplies.

Prime Costs

The immediate expenses involved in producing a product, encompassing both the raw materials and the direct labor costs.