Conversion Costs Are an Example of ________

question 40

Multiple Choice

Conversion costs are an example of ________.

• A) direct engineered costs
• B) indirect engineered costs
• C) discretionary costs
• D) unused capacity costs

---

Definitions:

Automates

The process of making an operation or procedure carried out without human intervention through the use of mechanical or electronic devices.

Agency

A relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealing with third parties.

Impossible

A term used to describe a task or condition that cannot realistically be fulfilled or achieved.

Agency Relationship

A legal arrangement in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.