Asked by Andrew Cameron on Jun 22, 2024
Verified
Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?
A) accounting department costs
B) raw lumber
C) assembly labor's wages
D) administrative salaries
Conversion Costs
Costs in manufacturing that include direct labor and overhead expenses involved in converting raw materials into finished products.
Assembly Labor
The work force and associated costs involved in physically assembling products in a manufacturing process.
- Pinpoint and evaluate conversion expenditures in an industrial environment.
Verified Answer
ES
Ekaterina SoupelJun 24, 2024
Final Answer :
C
Explanation :
Conversion costs refer to the costs incurred to convert raw materials into finished goods. Assembly labor's wages directly contribute to the conversion process, and therefore, are included in conversion costs. Accounting department costs and administrative salaries are categorized as period costs, while raw lumber is considered a direct material cost.
Learning Objectives
- Pinpoint and evaluate conversion expenditures in an industrial environment.
Related questions
In the Manufacture of 8,000 Units of a Product, Direct ...
Which of the Following Costs Incurred by a Tool Manufacturer ...
A Company's Prime Costs Total $3,000,000 and Its Conversion Costs ...
Which of the Following Costs Incurred by a Paper Manufacturer ...
Which of the Following Costs Incurred by a Paper Manufacturer ...