Which of the following would NOT be included in the conversion cost of an automobile?
A)screws used in assembly
B)assembly worker wages
C)depreciation on machinery
D)steel

Question

Quizplus · Accepted Answer

Steel is a direct material and not a conversion cost. Conversion cost includes the cost of labor and overheads incurred while converting direct materials into finished goods. Screws used in assembly, assembly worker wages, and depreciation on machinery are all considered conversion costs as they are directly related to the manufacturing process.

Which of the Following Would NOT Be Included in the Conversion