Conversion Cost Does Not Include

question 112

Multiple Choice

Conversion cost does not include

• A)direct labor.
• B)direct material.
• C)factory depreciation.
• D)supervisors' salaries.

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Definitions:

Planning

The process of setting objectives, determining strategies, and outlining tasks and schedules to achieve the goals of an organization or project.

Work Unit

A functional group or team within an organization, often defined by a common task, project, or goal.

Coordination

The process of organizing people or groups so that they work together properly and well.

Resource Utilization

The efficient and effective use of resources such as time, money, and materials within an organization or project.