Conversion cost is subtracted from manufacturing overhead cost is to calculate the
A. manufacturing labour costs
B. direct labour costs
C. direct manufacturing labour costs
D. indirect manufacturing labour costs
Answer: Option C
Solution(By Examveda Team)
Conversion cost is subtracted from manufacturing overhead cost is to calculate the direct manufacturing labour costs. Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs.Join The Discussion
Comments ( 1 )
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
Question is worng!!!!
Conversion costs are the combination of direct labor costs plus manufacturing overhead costs.