What Does Conversion Cost Consist Of

question 68

Multiple Choice

What does conversion cost consist of?

• A) Manufacturing overhead cost.
• B) Direct materials and direct labour cost.
• C) Direct labour cost.
• D) Direct labour and manufacturing overhead cost.

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Definitions:

Quality Gap

Quality Gap is the difference between customer expectations for service quality and their perceptions of the actual service received.

Instrumental Support

Practical or material assistance provided to someone in need, such as financial help or resources.

Delivery Gap

The discrepancy between a company's service quality specifications and the actual service delivered to customers.

Zone of Tolerance

The range within which consumers are willing to accept variations in a product or service’s level of quality.