Asked by
Senay Solomon
on Nov 18, 2024
Verified
Conversion costs are
A) direct materials and direct labor
B) direct materials and factory overhead
C) factory overhead and direct labor
D) direct materials and indirect labor
Conversion Costs
The sum of labor costs and manufacturing overhead costs required to convert raw materials into finished products.
Factory Overhead
Indirect manufacturing costs that cannot be directly attributed to specific units produced, such as maintenance, utilities, and salaried personnel expenses.
Direct Labor
The expenditure on the pay of staff who are directly participating in the creation of products or services.
- Determine and gain an understanding of the costs related to converting and prime expenses.
Verified Answer
LK
Learning Objectives
- Determine and gain an understanding of the costs related to converting and prime expenses.