The Two Categories of Cost Comprising Conversion Costs Are

question 129

Multiple Choice

The two categories of cost comprising conversion costs are

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

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Definitions:

Economic Value

The value of an asset derived from its ability to generate income, benefits, or utility for its owner.

Reference Value

A baseline number or set of numbers used for comparison purposes in analysis.

Differentiation Value

The unique attributes or benefits that make a product or service stand out from competitors in the eyes of consumers.

Unit Product Cost

The total cost (variable and fixed) incurred to produce, store, and sell one unit of a product.