Vidyalelo
Commerce · Q288

Costing

Graduate and Post Graduate · Commerce · question 288

Q288

Direct manufacturing labour costs is added into manufacturing overhead cost to calculate

A.
transaction costs
B.
conversion costs
Answer
C.
resale costs
D.
merchandise costs

Answer: Option B

Solution

Answer: Option B
Solution:
Direct manufacturing labour costs is added into manufacturing overhead cost to calculate conversion costs. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.