Question

Conversion costs include​ ________. A. direct labor and manufacturing overhead costs B. direct material and direct labor costs C. product and period costs D. direct​ material, direct​ labor, and manufacturing overhead costs

Answer 1

Answer:

A. direct labor and manufacturing overhead costs.

Explanation:

In Financial accounting, conversion costs comprises of all the costs associated with the conversion of raw materials into finished goods or products. These costs are usually calculated by the addition of direct labor and manufacturing overhead.

Hence, conversion costs include​ direct labor and manufacturing overhead costs.