Which of the following statements correctly describes the term "conversion costs"?
A) the cost to convert finished goods to sales to customers
B) the cost incurred for direct and indirect materials during production
C) the cost of direct materials, direct labor, and manufacturing overhead costs incurred during production
D) the cost of direct labor combined with manufacturing overhead

Question

Quizplus · Accepted Answer

Conversion costs include the costs of direct labor and manufacturing overhead, as these are the expenses incurred to convert raw materials into finished goods.

Which of the Following Statements Correctly Describes the Term "Conversion