Conversion costs are:
A) direct material, direct labor, and manufacturing overhead.
B) direct material and direct labor.
C) direct labor and manufacturing overhead.
D) prime costs.
E) period costs.

Question

Quizplus · Accepted Answer

Conversion costs consist of direct labor and manufacturing overhead. These are the costs incurred to convert raw materials into finished goods, excluding the cost of the raw materials themselves (direct material).

Conversion Costs Are