Conversion costs are an example of ________.
A) direct engineered costs
B) indirect engineered costs
C) discretionary costs
D) unused capacity costs

Question

Quizplus · Accepted Answer

Conversion costs are indirect engineered costs. These costs are related to the transformation process of raw materials into finished goods or services and include direct labor, factory rent, utilities, and depreciation of production equipment. Indirect engineered costs are expenses that can be traced to manufacturing activities, but not directly to a specific product or service.

Conversion Costs Are an Example of ________