Conversion Costs Include ________

question 13

Multiple Choice

Conversion costs include ________.

• A) direct materials and direct manufacturing labor costs
• B) direct manufacturing labor and manufacturing overhead costs
• C) direct materials and manufacturing overhead costs
• D) only direct materials

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Definitions:

Personal Computer

A compact, relatively inexpensive computer designed for individual use, capable of running general-purpose applications and accessing the internet.

Cost Per Unit

The total cost to produce a single unit of product, including fixed and variable costs.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.

Level Of Activity

A measure of the volume of production or operations within a business, used to allocate costs or plan for capacities.