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Answer (A) is correct . Manufacturing costs are often grouped into the following classifications: ?prime cost, which equals direct materials plus direct labor (i.e., those costs directly attributable to a product), and conversion cost, which equals direct labor plus manufacturing overhead (i.e., the costs of converting raw materials into the finished product). The wages earned by a painter working for a painting contractor are thus properly classified as both a prime cost and a conversion cost.

Answer (B) is incorrect because The wages earned by a painter working for a painting contractor are properly classified as both a prime cost and a conversion cost.
Answer (C) is incorrect because The wages earned by a painter working for a painting contractor are properly classified as both a prime cost and a conversion cost.
Answer (D) is incorrect because The wages earned by a painter working for a painting contractor are properly classified as both a prime cost and a conversion cost.