The purpose of the conversion process is to transform raw materials into finished products with:
A)Direct labor.
B)Overhead.
C)Both direct labor and overhead.
D)Neither direct labor nor overhead.

Question

Quizplus · Accepted Answer

The conversion process involves the use of both direct labor and overhead to transform raw materials into finished products. Direct labor refers to the labor costs involved in producing the goods, while overhead includes all other indirect costs such as rent, utilities, and equipment depreciation. Therefore, the best choice is C.

The Purpose of the Conversion Process Is to Transform Raw