 So anything like the depreciation on the factory the supervisor salary on the factory the small tools that we use the glue That we're going to use all that stuff is part of the conversion process part of the things that we're doing to Adding on to that piece of wood in order to convert it from just a piece of wood to the end product to the guitar Now this is going to be an added category that we can start to get confused with something like Direct versus an indirect cost. It's a bit different of a concept We need to keep these separated so the prime costs and the conversion costs We're often going to use more when we use a process cost system We'll talk about a job cost versus a process cost system But it's different than the direct costs and the indirect costs Remember that our direct costs are going to be those that are direct materials and direct labor are both direct costs Which happens to be the two prime costs as well But for different reasons these two are going to be direct costs because we can we can apply those activities To a particular unit if we have a job cost system, we can apply those two activities to a particular guitar We know which guitars were worked on and can therefore apply these these costs to that guitar Whereas the overhead was indirect because we didn't know which in a job cost system We wouldn't know which guitar to apply all the stuff in overhead to we have to find some way to do that so if you if you compare the two the prime costs are utilizing the same factors as As the direct costs, but for different reasons the prime cost meaning that they're going to be prime The prime factors of productions the primary expenditures the ones that are going to be most associated with the manufacturing of the inventory So those two are similar the difference of course is the conversion cost does not Equivalent or is not at all the same as the indirect costs the indirect costs are just going to be the overhead Because we can't apply them if you think of a job cost system, we can't apply them to the job. That's why they're indirect That's why they're in overhead from a conversion standpoint the conversion means anything that we're doing to the inventory to convert it So that's why it's going to include the direct labor So here's where the overlap is this direct labor becomes a bit confusing because it's both a prime cost and a conversion cost and when we consider that and compare and contrast it to direct versus indirect prime costs and direct costs happen to have the same two components, but for Different reasons the conversion is not the same as the indirect costs because the conversion represents us Converting this information which will include this direct labor as well as the overhead