Answer (D) is correct . Direct labor is both a product cost and a prime cost. Product costs are incurred to produce units of output and are deferred to future periods to the extent that output is not sold. Prime costs are defined as direct materials and direct labor.
Answer (A) is incorrect because Direct labor is also a product cost.
Answer (B) is incorrect because A period cost is expensed when incurred. Direct labor cost is inventoriable.
Answer (C) is incorrect because Direct labor is also a prime cost.
| 
