Conversion costs do NOT include:
A)depreciation.
B)direct materials.
C)indirect labor.
D)indirect materials.

Question

Quizplus · Accepted Answer

Conversion costs refer to the costs incurred to convert raw materials into finished products. These costs include direct labor and overheads such as indirect labor, depreciation, and indirect materials. Direct materials are not considered conversion costs as they are incurred before the conversion process begins.

Conversion Costs Do NOT Include