In a process costing environment,direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost".

Question

Quizplus · Accepted Answer

In a process costing environment, direct labor and manufacturing overhead are usually combined into one cost category called "conversion cost". This is because both of these costs are considered to be indirect costs and are associated with converting raw materials into finished goods. By combining them into one category, it simplifies the costing process and makes it easier to assign costs to the products being produced.

In a Process Costing Environment,direct Labor and Manufacturing Overhead Are