In a process costing system, conversion costs are normally assumed to be incurred evenly throughout the production process.

Question

Quizplus · Accepted Answer

In a process costing system, conversion costs are allocated evenly throughout the production process because they are incurred over time as direct labor and manufacturing overhead are applied to the units being produced. This allows for a more accurate calculation of the cost per unit and helps to ensure that all costs are properly accounted for in the final product cost.

In a Process Costing System, Conversion Costs Are Normally Assumed