Which of the following will be classified as a conversion cost?
A) cost of direct materials used
B) depreciation on factory equipment
C) salary of sales personnel
D) depreciation on office furniture

Question

Quizplus · Accepted Answer

Conversion costs refer to the costs incurred during the manufacturing process, which include direct labor and manufacturing overhead. Depreciation on factory equipment is a manufacturing overhead cost, making it a conversion cost. Options A, C, and D are not conversion costs.

Which of the Following Will Be Classified as a Conversion