To cover the majority of the costs of conversion and to make a small profit.
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.
No, Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
false, direct labor and manufacturing overhead = conversion cost
Charging the cost of using fully depreciated machinery to the cost unit
conversion cost = direct wages + factory overheads (indirect material + indirect wages)
The one cost that would be classified as part of both prime cost and conversion cost would be:
The one cost that would be classified as part of both prime cost and conversion cost
Consumers use cost-benefit analysis in order to maximize utility.
The two categories of cost comprising conversion costs are direct labor and factory overhead
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
Consumers use cost-benefit analysis in order to maximize utility.
Consumers use cost-benefit analysis in order to maximize utility.