Production, Not Marketing, Should Determine What Products Are to Be

question 326

True/False

Production, not marketing, should determine what products are to be made.

---

Definitions:

Conversion Costs

These are the costs required to convert raw materials into finished products, comprising labor and overhead expenses.

Materials Costs

Expenses incurred for materials that are directly associated with manufacturing a product.

Equivalent Units

A concept used in process costing to convert partially completed units into a number of equivalent fully completed units.

Conversion Costs

Costs associated with converting raw materials into finished goods, typically comprising labor and overhead expenses.