In operation costing, direct materials for each work order or batch passing through a particular operation are different, while conversion costs are the same.

Question

Quizplus · Accepted Answer

In operation costing, direct materials can vary for each work order or batch to reflect the specific requirements of each job, while conversion costs (labor and overhead) are typically treated as uniform across all units processed through a particular operation.

In Operation Costing, Direct Materials for Each Work Order or Batch