Cupcake mix

A) Prime costs
B) Conversion costs
C) Both prime and conversion costs
D) Neither prime nor conversion costs

Cupcake Mix

A pre-prepared blend of ingredients used for baking cupcakes, requiring only the addition of a few wet ingredients.

Prime Costs

Prime costs are the direct costs of manufacturing a product, consisting of direct labor and direct materials.

Conversion Costs

The aggregate of labor and overhead expenses incurred in converting raw materials into finished goods.