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How prime cost is differant from conversion cost and Manufacturing Costs?

Answer:

Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.

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First answer by ID1287824477. Last edit by ID1287824477. Question popularity: 1 [recommend question].

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Prime cost and conversion cost?
Prime cost = direct materials + direct labor while conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
Costs can either be prime costs or conversion costs but not both?
direct labor
What is prime cost in cost accounting?
Sum of direct materials and direct labor
What is the difference between prime cost and conversion cost?
Prime Cost=Direct Materials+Direct Labor Conversion Cost=Direct Labor+Factory (or Manufacturing) Overhead
Is direct labor cost part of a conversion or prime cost?
Both are correct. Coversion cost = Direct Labour + Manufacturing Overhead Prime cost = Direct Labour + Direct...