The Reason for Combining Direct Labor and Overhead Costs Together

question 45

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 these types of costs usually are incurred uniformly throughout the production process.
• D)the costs for direct labor and overhead are not accounted for separately.

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Definitions:

Sphenoid

Wedge-shaped.

Appendicular Skeleton

The portion of the skeleton that includes the bones of the limbs and the supporting bone girdles (pectoral and pelvic) that connect them to the central body, or axial, skeleton.

Limbs

Extremities of the body used for movement and interaction with the environment, such as arms and legs in humans.

Girdles

Structures that connect the limbs to the axial skeleton, including the pelvic girdle and shoulder girdle.