Direct labour costs plus factory overhead costs are known as:

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Quizplus · Accepted Answer

Conversion costs is the combination of direct labour costs and factory overhead costs, and is used to calculate the cost of producing a product or providing a service. Prime costs only include direct labour and direct materials, while direct costs are costs that can be directly traced to a specific product or service. Variable costs are costs that vary in relation to the level of output or sales, and may include both direct and indirect costs.

Direct Labour Costs Plus Factory Overhead Costs Are Known As