In the cost classification system used by manufacturing firms, assembly workers' wages would be included in all of the following EXCEPT:
A)product cost
B)prime cost
C)conversion cost
D)period cost

Question

Quizplus · Accepted Answer

Assembly workers' wages would be considered either direct labor or indirect labor, both of which are part of conversion cost (which includes direct labor and manufacturing overhead) and prime cost (which includes direct materials and direct labor). However, they are not considered a period cost, which are expenses not directly related to production, such as advertising or administrative salaries.

In the Cost Classification System Used by Manufacturing Firms, Assembly