In a process costing environment, direct materials and direct labor are usually combined into one cost category called "conversion costs."

Name: In a process costing environment, direct materials and direct labor are usually combined into one cost category called "conversion costs."
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Conversion costs typically include direct labor and manufacturing overhead costs, not direct materials. Direct materials are usually considered a separate cost category.

In a Process Costing Environment, Direct Materials and Direct Labor