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:

State Bar Associations

Professional organizations that license, regulate, and discipline lawyers within a specific state.

Unified Bar

A unified bar is a mandatory organization that all lawyers must belong to in order to practice law within a certain jurisdiction.

State Bar Association

An organization that represents the legal profession within a specific state, often responsible for regulating the practice of law and providing legal education.

Advertising Services

Services involved in the creation, planning, and handling of advertising and promotions for businesses and organizations.