Conversion costs are:
A)direct material, direct labour, and manufacturing overhead.
B)direct material and direct labour.
C)direct labour and manufacturing overhead.
D)prime costs.
E)period costs.

Question

Quizplus · Accepted Answer

Conversion costs are the costs associated with converting raw materials into finished products. These costs include direct labour and manufacturing overhead, but do not include direct materials. Prime costs include both direct materials and direct labour, while period costs are not related to the production process.

Conversion Costs Are