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Conversion costs are a. Direct labor plus manufacturing overhead. B. Direct materials plus manufacturing overhead. C. Indirect materials plus indirect labor. D. Direct materials plus direct labor

Sagot :

Answer:

a.  Direct labor plus manufacturing overhead.

Explanation:

Thats conversion cost.

Conversion costs are the costs of converting a direct material into a finished product, which include direct labor and production overhead. That is, at Option A.

What is the meaning of conversion cost?

Conversion costs are also used to analyze the efficiency of manufacturing processes, but they include overhead expenses that are not calculated into prime costs. Conversion costs are widely utilized by operations managers to identify areas of waste in the manufacturing process.

For more information about Conversion costs refer to the link:

https://brainly.com/question/18365833

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