Asked by Mason Smith on Apr 27, 2024
Verified
The cell conversion cost rate includes which of the following?
A) only factory overhead
B) only direct labor and direct materials
C) direct labor, direct materials, and factory overhead
D) only direct labor and factory overhead
Factory Overhead
All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of supervisors, not directly tied to a specific product.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.
- Appreciate the role that financial and nonfinancial indicators play in measuring performance.
- Evaluate the repercussion of lean manufacturing adoption on accounting frameworks and financial activities.
Verified Answer
RB
Richard BurnadzMay 01, 2024
Final Answer :
D
Explanation :
The cell conversion cost rate typically includes both direct labor and factory overhead costs, but not direct materials. Direct materials are usually considered a separate component of the total manufacturing cost.
Learning Objectives
- Appreciate the role that financial and nonfinancial indicators play in measuring performance.
- Evaluate the repercussion of lean manufacturing adoption on accounting frameworks and financial activities.
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