What term refers to the cost of changing direct materials into a finished manufactured product?
A) factory overhead cost
B) period cost
C) conversion cost
D) direct labor cost

Question

Quizplus · Accepted Answer

Conversion cost refers to the cost of converting direct materials into a finished manufactured product. This includes direct labor cost and factory overhead cost. Period cost refers to expenses that are not directly related to the manufacturing process, such as selling and administrative expenses.

What Term Refers to the Cost of Changing Direct Materials