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Conversion cost include a- direct and indirect labor b - direct labor and direct material c - direct labor and factory overhead

Budgeting Financial Accounting Costing
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2014/11/16
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Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

c)

Conversion costs include direct labor and factory overhead. Because indirect labor is included in factory overhead, indirect labor is a conversion cost.

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

correct answer is c 

Dawood Kapasi
by Dawood Kapasi , Consultant , Deloitte

b - direct labor and direct material

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