Question

In cost accounting, the sum of direct materials and direct labor is known as:

Q: Answer-In cost accounting, the sum of direct materials and direct labor is known as:

Prime Cost is the aggregate of all direct costs. It is calculated as Direct Materials Direct Labor Direct Expenses if any. Conversion Cost C is Direct Labor Factory Overheads, which is the cost of converting raw materials into finished goods.

A Total Cost

B Prime Cost

C Conversion Cost

D Factory Cost

E Variable Cost

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In cost accounting, the sum of direct materials and direct labor is known as:

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