Which of the Following Statements Is True of Conversion Costs

question 4

Multiple Choice

Which of the following statements is true of conversion costs?

• A) Estimating the degree of completion is usually easier for direct material costs than for conversion costs.
• B) The calculation of equivalent units is relatively easy for the textile industry.
• C) The conversion cost needed for a completed un0it and the conversion cost in a partially completed unit can be measured accurately.
• D) If conversion costs are added evenly during the assembly we can conclude that there are more than one indirect-cost category.

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