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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