Which of the Following Would NOT Be Included in Conversion

question 144

Multiple Choice

Which of the following would NOT be included in conversion costs?

• A)direct materials
• B)direct labour
• C)factory overhead
• D)raw materials

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs to a production process for subsequent modification or transformation into finished goods.

Direct Labor

The workforce directly involved in product manufacturing, whose labor is easily traced to the product itself.

Wages of Supervisors

Compensation paid to individuals who oversee and manage the work of others within an organization.

Bottlers

Companies or individuals engaged in the process of packaging beverages, most commonly soft drinks or alcoholic beverages, for distribution and sale.