Which of the following is not included in conversion costs?
A) Direct labor.
B) Factory overhead.
C) Indirect labor.
D) Direct materials.

Question

Quizplus · Accepted Answer

Conversion costs only include the costs incurred in converting raw materials into finished products, which are direct labor and factory overhead. Direct materials are not included in conversion costs as they are considered a separate cost category.

Which of the Following Is Not Included in Conversion Costs