Which of the Following Costs Are Referred to as Conversion

question 131

Multiple Choice

Which of the following costs are referred to as conversion costs?

• A) Direct labor cost and factory overhead cost
• B) Direct materials cost and direct labor cost
• C) Factory overhead cost
• D) Direct materials cost and factory overhead cost

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Definitions:

Percentage

A mathematical term expressing a number or ratio as a fraction of 100, used to compare proportions and compute changes in quantities.

Production Possibilities Curve

Represents different combinations of two goods that can be produced with a given set of resources and technology, assuming efficient use of resources.

Domestic Output

The total value of all goods and services produced within the borders of a country within a specific period.

Before-Tax Household Income

The total income earned by all members of a household before any taxes are deducted.