The Reason for Combining Direct Labor and Overhead Costs Together

question 16

Multiple Choice

The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that

• A) they both are direct costs of production.
• B) the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.
• C) both types of costs usually are incurred uniformly throughout the production process.
• D) the costs for direct labor and overhead are not accounted for separately.

---

Definitions:

Original Source

The initial point of information or the earliest document or media from which information was obtained.

Preparing Report

The process of collecting, analyzing, and organizing information into a structured document for a specific audience and purpose.

Conduct Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Secondary Data

Secondary data refers to information that was collected by someone else or for a different purpose but is being used as a source for a current research project or analysis.