Which of the following is TRUE about conversion costs?
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Quizplus · Accepted Answer

Conversion costs include manufacturing costs except for the direct materials. They typically consist of labor and overhead. In process costing, these costs are often considered to be added evenly throughout the production process, making option B correct. Options A and C are incorrect because conversion costs do not include direct materials or all factors of production, which would also encompass things like land and capital outside of direct manufacturing costs.

Which of the Following Is TRUE About Conversion Costs