Conversion costs can be defined as
A)Manufacturing costs plus non-manufacturing costs.
B)Direct labor plus direct materials.
C)Variable costs plus fixed costs.
D)Manufacturing costs minus direct materials.

Question

Quizplus · Accepted Answer

Conversion costs are the manufacturing costs that are incurred to convert raw materials into finished goods, excluding the cost of direct materials. Therefore, the manufacturing costs minus the direct materials cost will give us the conversion costs.

Conversion Costs Can Be Defined as