How are conversion costs normally assigned under features and characteristics costing?
A)using a predetermined overhead rate
B)using a labour rate
C)based on proportion of production
D)using a conversion ratio that considers different features

Question

Quizplus · Accepted Answer

Conversion costs are normally assigned under features and characteristics costing using a conversion ratio that considers different features. This is because the conversion process is often different for different features, and so a single overhead rate would not be appropriate.

How Are Conversion Costs Normally Assigned Under Features and Characteristics