Direct labour costs plus factory overhead costs are known as:

Question

Quizplus · Accepted Answer

Direct labour costs and factory overhead costs are both part of the manufacturing process, and combining them results in the conversion costs. Prime costs include only direct materials and direct labour costs, while direct costs refer to expenses that can be directly attributed to a specific product or service. Variable costs are expenses that vary based on the level of production or sales.

Direct Labour Costs Plus Factory Overhead Costs Are Known As