Prime costs are direct material and direct labor and they are traceable to one cost object.
Variable costs are costs that vary as production changes. They may or may not benefit more than one cost object.
Conversion costs are the costs of converting direct material to the finished goods. They include direct labor and overhead. They may or may not benefit more than one cost object.
Common costs are the costs that are shared by more than one cost object. A cost object is anything for which costs are accumulated for managerial purposes: a specific product, job, product line, a market or certain customers.
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