Conversion Costs Are

question 15

Multiple Choice

Conversion costs are

• A) direct materials and direct labor
• B) direct materials and factory overhead
• C) factory overhead and direct labor
• D) direct materials and indirect labor

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Definitions:

Allowance For Doubtful Accounts

An accounting concept referring to a reserve for accounts receivable that may not be collectible.

Aging

A method used in accounting to categorize accounts receivables based on the length of time an invoice has been outstanding to manage and track debts.

Uncollectible

Accounts receivable that are deemed to be uncollectable and thus are written off as an expense.

Receivables Accounting

The process of recording and managing the money owed to a business by its customers for goods or services offered.