The sum of direct labour and factory overhead is referred to as
A)period costs.
B)conversion costs.
C)prime costs.
D)direct product costs.

Question

Quizplus · Accepted Answer

Conversion costs refer to the costs involved in converting raw materials into finished products, which includes both direct labor and factory overhead. Period costs are not related to the production process, prime costs only include direct materials and direct labor, and direct product costs refer to the total cost of producing a specific product.

The Sum of Direct Labour and Factory Overhead Is Referred