Conversion costs
A)are often assumed to be added at the beginning of the production process in each department.
B)are the sum of the direct materials and direct labor costs.
C)are rarely a part of the cost transferred out of a process department.
D)are often assumed to be added evenly throughout the process within a department.

Question

Quizplus · Accepted Answer

Conversion costs include direct labor and overhead costs that are incurred to convert raw materials into finished goods. These costs are assumed to be added evenly throughout the production process within each department. Therefore, option D is the correct answer.

Conversion Costs