In a process costing system,labor and overhead costs are typically combined and referred to as conversion costs.

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In a process costing system, labor and overhead costs that are required to convert raw materials into finished goods are typically combined and referred to as conversion costs. This is because both labor and overhead costs are indirect costs that cannot be easily traced to individual units of production. Therefore, they are combined and allocated to each unit of output based on some predetermined overhead rate or formula.

In a Process Costing System,labor and Overhead Costs Are Typically