Which of the following costs incurred by a paper manufacturer would NOT be included in the group of costs referred to as conversion costs?
A) Factory supervisor's salary
B) Machine operator's wages (direct labor)
C) Raw lumber (direct materials)
D) Factory maintenance personnel supplies

Question

Quizplus · Accepted Answer

Conversion costs refer to the costs that are incurred to convert raw materials into finished goods. Therefore, raw lumber (direct materials) would not be included in conversion costs. The other options, such as factory supervisor's salary, machine operator's wages, and factory maintenance personnel supplies are all part of conversion costs as they are directly related to the production process.

Which of the Following Costs Incurred by a Paper Manufacturer