The Customer Value Triad Is Based on All of the Following

question 114

Multiple Choice

The customer value triad is based on all of the following except _____.

• A)quality
• B)service
• C)availability
• D)price

---

Definitions:

Conversion Costs

Conversion costs refer to the sum of direct labor and manufacturing overhead costs that are incurred to convert raw materials into finished goods.

Material Costs

The cost of raw materials used in the production of goods.

Equivalent Units

A method used in cost accounting to allocate costs to partially completed goods, calculated as the number of complete units that could have been produced with the amount of work done.

Conversion Costs

refer to the combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.