The variable portion of the cost of electricity for a manufacturing plant is a: I. Conversion Cost or II. Period Cost
A)Only I
B)Both I and II
C)Only II
D)Neither I nor II

Question

Quizplus · Accepted Answer

The variable portion of the cost of electricity is part of the conversion cost, which includes direct labor and manufacturing overhead costs. Period costs, on the other hand, are not directly related to the production process and include expenses such as selling and administrative costs.

The Variable Portion of the Cost of Electricity for a Manufacturing