The conversion process is initiated when the company recognizes:
A)The receipt of raw materials
B)The shipment of finished goods to customers
C)The need to conduct operations
D)None of the above

Question

Quizplus · Accepted Answer

The conversion process refers to the transformation of raw materials into finished goods through various operations. Therefore, the recognition of the need to conduct operations is essential for initiating the conversion process. The receipt of raw materials and shipment of finished goods are both outcomes of the conversion process and do not necessarily initiate it.

The Conversion Process Is Initiated When the Company Recognizes