Question

Are the costs of transforming direct materials into finished goods.

Answer 1

Conversion Cost
   You can call this the cost of changing the goods into buyable items . These costs are the blend of direct work costs in addition to assembling overhead expenses. You can consider conversion costs as the assembling or generation costs important to change over crude materials into items. Communicated another way, conversion costs are a maker's item or generation costs other than the expenses of crude materials.