Question

Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: a. Paper used for the magazine b. Wages of printing machine employees c. Glue used to bind magazine d. Maintenance on printing machines

Answer 1

a. Paper used for the magazine = prime cost (P)

b. Wages of printing machine employees = both (B

c. Glue used to bind magazine = prime cost (P)

d. Maintenance on printing machines = conversion cost (C)

Step-by-step explanation:

prime cost (P), conversion cost (C), or both (B) are cost of a manufacturing business.