Which of the Following Will Be Classified as a Conversion

question 111

Multiple Choice

Which of the following will be classified as a conversion cost?

• A) cost of direct materials used
• B) depreciation on factory equipment
• C) salary of sales personnel
• D) depreciation on office furniture

---

Definitions:

Total Reserves

The sum of a bank's deposits held at the central bank and the cash held in vaults.

Checkable Deposits

Refers to deposits in bank accounts from which individuals can write checks or use debit cards to make purchases directly.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations.

Money Supply

Refers to the total amount of money—cash, coins, and balances held in checking and savings accounts—available within an economy at a specific time.