alleryStart learning →Direct labour plus manufacturing overhead together are known as:
AConversion costs
BConcession costs
CCollection costs
DComparison costs
Answer & Solution
Correct answer: A. Conversion costs
1. These are what it takes to turn raw material into finished goods.
2. The materials themselves are excluded from the pair.
3. Together they are the conversion costs.
_Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
Keep practising Job Order Costing
Browse all Job Order Costing questions for CIMA Management Level, or explore more Accounting topics.