Which of the following combinations of costs make up conversion cost
A)Direct materials cost and manufacturing overhead cost.
B)Direct labour cost and manufacturing overhead cost.
C)Marketing cost and administrative cost.
D)Direct materials costs and direct labour cost.

Question

Quizplus · Accepted Answer

Conversion cost includes direct labor cost and manufacturing overhead cost. Direct materials cost is a component of prime cost. Marketing cost and administrative cost are not part of conversion cost.

Which of the Following Combinations of Costs Make Up Conversion