17 Costing Fundamentals Flashcards
1
Q
What are conversion costs?
A
Costs of converting materials into a finished product. Ex - direct labor and manufacturing overhead
2
Q
What are prime costs for a manufacturer?
A
direct materials and direct labor
3
Q
What is contribution margin?
A
The difference between revenues and variable costs.
4
Q
What is contribution margin?
A
The difference between revenues and variable costs.
