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To cover the majority of the costs of conversion and to make a small profit.

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13y ago

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Banks make money orders by charging a fee to customers who want to purchase them. This fee covers the cost of processing the money order and provides a profit for the bank.


Is the cost of direct materials classified as a conversion cost?

No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.


Is Direct material cost combined with manufacturing overhead cost is known as conversion cost?

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Example of imputed cost?

Charging the cost of using fully depreciated machinery to the cost unit


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The one cost that would be classified as part of both prime cost and conversion cost would be:


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Consumers use cost benefit in order to maximize what?

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Consumers use cost-benefit analysis in order to maximize what?

Consumers use cost-benefit analysis in order to maximize utility.


Consumers used cost- benefit analysis in order to maximize what?

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