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    Question

    Which among the following correctly calculates

    Conversion Cost?
    A Material Cost + Overhead Cost Correct Answer Incorrect Answer
    B Direct Labour + Overhead Cost Correct Answer Incorrect Answer
    C Direct Material + Direct Labour Correct Answer Incorrect Answer
    D Variable Overhead + Fixed Overheads Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Conversion Cost is the total of Labour cost and overheads incurred.

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