Which of the Following Costs Are Conversion Costs

question 70

Multiple Choice

Which of the following costs are conversion costs?

• A) direct labor cost and factory overhead cost
• B) direct materials cost and direct labor cost
• C) factory overhead cost
• D) direct materials cost and factory overhead cost

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Definitions:

Discharges

The release or dismissal from a duty, obligation, or liability.

Employer

An individual or organization that hires and pays people to work for them under agreed-upon terms.

Adequately

In a manner that is sufficient or satisfactory for a particular purpose.

Performance

In contract law, it refers to the act of doing what is required by a contract.