Conversion cost is:

CS Executive · Cost and Management Accounting · PYQS · December 2018
Conversion cost is:
(A) Sum of direct material, direct labour, direct expenses and factory overheads
(B) Sum of direct material, direct labour, direct expenses and variable factory overheads
(C) Sum of direct labour and factory overheads
(D) Factory overheads only

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Cost Concepts

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