Which of the following terms are commonly used in manufacturing cost accounting systems?

Multiple choice question for Accounting Concepts. Select an option, then review the explanation below.

Explanation

In manufacturing cost systems, the key terms often referenced are prime costs (direct materials and direct labor) and conversion costs (direct labor plus manufacturing overhead). Therefore, both prime costs and conversion costs are the correct terms used, making option D the right answer.

Practice related questions from the same subject.

1.In project costing, what is the term used for wages paid to workers during periods of inactivity caused by material shortages?
2.Given that the direct material cost amounts to $85,000 and the direct manufacturing labor cost is $25,000, what is the total prime cost?
3.Given that the direct material cost amounts to $5,500 and the prime cost totals $25,000, what is the value of the direct manufacturing labor?
4.Which category includes the expenses for employee health care premiums and pension contributions?
5.What term is used to describe the stock of completed products that have not been sold yet?

Which of the following terms are commonly used in manufacturing cost accounting systems?

Explanation

More Accounting Concepts MCQs