Conversion Costs and Direct Materials Costs Are Generally Both Added

question 216

True/False

Conversion costs and direct materials costs are generally both added at the end of the production process.

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Definitions:

Direct Labor

Workers or employees directly involved in the production of goods and services, whose wages are considered a direct cost of production.

Direct Labor Variances

The differences between the actual costs of direct labor and the standard or expected costs.

Direct Labor Standards

Established benchmarks that specify the amount of direct labor time and the cost that should be involved in producing one unit of finished goods.

Labor Cost

The total amount of money paid for employee wages, benefits, and taxes by a business.