Conversion costs and direct materials costs are generally both added at the end of the production process.

Question

Quizplus · Accepted Answer

Conversion costs and direct materials costs are both incurred during the production process and are added to the product cost as they are incurred, rather than being added at the end of the process. Conversion costs include direct labor and overhead costs, while direct materials costs include the cost of the materials used to make the product.

Conversion Costs and Direct Materials Costs Are Generally Both Added