To determine the correct answer for the direct costs of producing a product, let’s analyze the options provided:

1. **Prime Costs**: These are the direct costs associated with the production of goods, including direct materials and direct labor.

2. **Gross Profit**: This is the difference between revenue and the cost of goods sold (COGS), not specifically a cost but a financial metric.

3. **Conversion Costs**: These refer to costs incurred to convert raw materials into finished products, which include direct labor and manufacturing overhead, but do not cover direct materials.

4. **T-account**: This is a tool used in accounting to represent accounts, and it does not pertain directly to costs.

### Final Answer
The correct choice is **a. Prime Costs**.

Question

To determine the correct answer for the direct costs of producing a product, let’s analyze the options provided:

1. **Prime Costs**: These are the direct costs associated with the production of goods, including direct materials and direct labor.

2. **Gross Profit**: This is the difference between revenue and the cost of goods sold (COGS), not specifically a cost but a financial metric.

3. **Conversion Costs**: These refer to costs incurred to convert raw materials into finished products, which include direct labor and manufacturing overhead, but do not cover direct materials.

4. **T-account**: This is a tool used in accounting to represent accounts, and it does not pertain directly to costs.

### Final Answer
The correct choice is **a. Prime Costs**.

Knowee AI · Accepted Answer

To determine the correct answer for the direct costs of producing a product, let’s analyze the options provided:

1. **Prime Costs**: These are the direct costs associated with the production of goods, including direct materials and direct labor.

2. **Gross Profit**: This is the difference between revenue and the cost of goods sold (COGS), not specifically a cost but a financial metric.

3. **Conversion Costs**: These refer to costs incurred to convert raw materials into finished products, which include direct labor and manufacturing overhead, but do not cover direct materials.

4. **T-account**: This is a tool used in accounting to represent accounts, and it does not pertain directly to costs.

### Final Answer
The correct choice is **a. Prime Costs**.

Direct costs of producing a product.Select one:a.Prime Costsb.Gross profitc.Conversion Costsd.T-account

Question

Direct costs of producing a product.

Solution

Final Answer

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