Which of the following is not included in conversion costs?
A)Indirect labor
B)Direct labor
C)Direct materials
D)Overhead

Question

Quizplus · Accepted Answer

Conversion costs refer to the expenses incurred in the process of converting raw materials into finished products. They include direct labor and overhead costs but do not include direct material costs, as these are considered part of prime costs. Therefore, option C, which indicates direct materials, is not included in conversion costs.

Which of the Following Is Not Included in Conversion Costs