Prime cost and conversion cost share what common element of total cost?

Answer D. Direct labor (both prime cost and conversion cost)

d. direct labour costs

 

Prime costs are all the direct costs of a product i.e. those costs that can be traced conveniently to each unit. These include direct materials cost and direct labor cost.

Conversion costs are all manufacturing costs other than direct materials cost. These include direct labor costs and manufacturing overheads.

Option D) is the correct answer

 

Prime costs consist of direct labor+direct material Conversion cost consist of direct labour +overhead Answer is direct labor

d) direct labor, prime costs include direct materials and direct labor, while the conversion costs include the direct labor and the overhead.

Prime cost=direct material+direct Labor

Conversion cost=Manufacturing overhead+direct Labor

Ans: Direct Labor is common in both.

Prime cost and conversion cost share what common element of total cost?

D) Direct Labour

D)   Direct labor is the correct answer .    

 

 

Prime cost = direct material + direct labor .

conversion cost = manufacturing overhead + direct labor 

so answer D is the right answer 

d. Direct Labor Cost ........................................ agreed with all

d) direct labor is the element of  both prime cost and conversion cost.So it is common element of total cost.