Asked by Angelica Golebiewski on Jul 13, 2024
Verified
Conversion cost is the same thing as manufacturing overhead.
Conversion Cost
The total expenses of direct labor and manufacturing overheads used in transforming raw materials into completed goods.
Manufacturing Overhead
All indirect costs associated with the production process, including salaries of supervisors, maintenance, and utilities in the manufacturing facilities.
- Gain an insight into the function of conversion costs in accounting, along with its constituent parts.
Verified Answer
TP
tobie plourdeJul 13, 2024
Final Answer :
False
Explanation :
Conversion cost includes both direct labor and manufacturing overhead costs, not just manufacturing overhead.
Learning Objectives
- Gain an insight into the function of conversion costs in accounting, along with its constituent parts.
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