In just-in-time manufacturing, the basic cost classifications used in product costing are materials and conversion costs.

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Quizplus · Accepted Answer

This is true. In just-in-time manufacturing, the two basic cost classifications used in product costing are materials and conversion costs. Materials costs include direct materials used in the production process, while conversion costs include direct labor and manufacturing overhead costs associated with converting the raw materials into finished products.

In Just-In-Time Manufacturing, the Basic Cost Classifications Used in Product