Conversion cost is the sum of
A) product costs and period costs.
B) selling cost and administrative costs.
C) direct labor cost and direct materials costs.
D) direct labor cost and overhead costs.

Question

Quizplus · Accepted Answer

Conversion costs consist of direct labor cost and overhead costs. Direct materials costs are not included in conversion costs. Selling costs and administrative costs are period costs, not product costs.

Conversion Cost Is the Sum of