yes it is part of the prime cost
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
Only direct material and direct labor is part of prime cost while overheads are part of conversion cost so indirect labor is part of overheads so automatically part of conversion cost and not prime cost.
Direct labor and direct materials are the components of prime cost so no other cost is part of prime cost and hence variable overheads also not included in prime cost.
Both are correct. Coversion cost = Direct Labour + Manufacturing Overhead Prime cost = Direct Labour + Direct Material SOURCE: http://highered.mcgraw-hill.com/sites/0070980829/student_view0/glossary.html
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
Only direct material and direct labor is part of prime cost while overheads are part of conversion cost so indirect labor is part of overheads so automatically part of conversion cost and not prime cost.
Direct labor and direct materials are the components of prime cost so no other cost is part of prime cost and hence variable overheads also not included in prime cost.
Both are correct. Coversion cost = Direct Labour + Manufacturing Overhead Prime cost = Direct Labour + Direct Material SOURCE: http://highered.mcgraw-hill.com/sites/0070980829/student_view0/glossary.html
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
In services industries there is no raw material so only direct labor is part of prime cost in services industry.
Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
Abnormal spolage is part of overhead expenses, as it is viewed as a cost of running the operation, rather than a direct cost. Note that normal spoilage (uncontrolable) is part of COGS
Yes.
"If selling personnals have received the salary then it is selling expense but generally it is considered as administration expense." Nonprofits are often concerned with distinguishing between program (direct) and administrative (indirect) expense. In general, salaries of program staff are considered a direct expense of that program. Salaries for administrative staff who don't have direct service functions are considered indirect. Some administrative staff may also do direct service and in that case, their salaries may be divided based on the proportion of direct and indirect work they complete.
The one cost that would be classified as part of both prime cost and conversion cost would be:
The one cost that would be classified as part of both prime cost and conversion cost