are the lowest level where costs are accumulated
Prime Cost Consists of
Direct Materials
Direct Labour
Direct Expenses
Factory Overhead
Manufacturing Cost
Which of the following about conversion Cost is true?
Conversion cost consists of direct labour and factory overhead
Conversion Cost is also called Value-added cost.
It provides the information about how much the unit is spending to convert the materials or componenets into end product
If conversion cost is high, there is a scope to earn more profit
If conversion cost is low, there is a scope to earn more profit
cost relates to unit manufactured during the year
