Which of the Following Assertions Is True Concerning Conversion Costs

question 6

Multiple Choice

Which of the following assertions is true concerning conversion costs?

• A) Direct labour costs are always included in conversion costs.
• B) The conversion period (for conversion costs calculation) can only include one operation.
• C) When conversion costs are estimated to be over 80% complete, then the cost-benefit constraint requires us to use 100% as the estimate.
• D) Conversion costs are impossible to estimate with any reliability.
• E) The conversion period often includes several operations, and it may be impossible to estimate conversion costs with any reliability in some cases.