The purpose of an organization's conversion process is:
A)To transform raw materials into finished products.
B)To determine if the company should use process costing.
C)Both to transform raw materials into finished products and to determine if the company should use process costing.
D)Neither to transform raw materials into finished products nor to determine if the company should use process costing.

Question

Quizplus · Accepted Answer

The purpose of an organization's conversion process is to transform raw materials into finished products. This process involves various stages, such as manufacturing, assembly, and packaging, to convert the raw materials into a finished product that can be sold to customers. Process costing is a separate concept that involves assigning costs to each production step. Therefore, option B and C are not correct. Option D is also not correct, as the purpose of the conversion process is to transform raw materials into finished products.

The Purpose of an Organization's Conversion Process Is