Prime Costs Multiple Choice Questions with Answers – PDF Download

MCQ 1: The direct manufacturing labor costs is added into manufacturing overhead cost to calculate:

1. transaction costs
2. conversion costs
3. resale costs
4. merchandise costs

MCQ 2: In cost terms, the direct manufacturing labor cost is included in:

1. manufacturing costs
2. prime costs
3. conversion costs
4. both B and C

MCQ 3: The prime cost is $50000 and the direct manufacturing labor is $10000, then the direct material cost will be:

1. $40,000
2. $60,000
3. $52,000
4. $20,000

MCQ 4: The direct material cost is $75000 and direct manufacturing labor is $20000, then prime cost would be:

1. $55,000
2. $37,500
3. $95,000
4. $26,000

MCQ 5: If the direct material cost is $5500 and the prime cost is $25000, then the direct manufacturing labor would be:

1. $19,500
2. $30,500
3. $45,500
4. $22,500