If manufacturing labor costs are added to the process at a different time compared to other conversion costs, an additional cost category-direct manufacturing labor costs-would be needed to assign these costs to products.

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Quizplus · Accepted Answer

This statement is true. Direct manufacturing labor costs are unique from other conversion costs (such as indirect labor, utilities, and factory overhead) and must be separately identified and assigned to products.

If Manufacturing Labor Costs Are Added to the Process at a Different