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It is the cost converting raw material into finished goods. It comprises direct labour and manufacturing overheads.

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15y ago

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Related Questions

Define cost price and selling price?

define cost and selling price


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?

false, direct labor and manufacturing overhead = conversion cost


What is conversion cost in cost sheet?

conversion cost = direct wages + factory overheads (indirect material + indirect wages)


What is the one cost that would be classified as part of both prime cost and conversion cost?

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 would be?

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


What are the two categories of cost comprising conversion cost?

The two categories of cost comprising conversion costs are direct labor and factory overhead


How prime cost is different from conversion cost and Manufacturing Costs?

Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.


Is indirect cost a conversion cost?

Indirect cost are those costs which are not directly allocated to product units as well as not directly identifiable that's why these are part of overhead cost and overhead cost is part of conversion cost.


How can conversion costs be explained?

The conversion cost is the amount of money it takes to change a resource into a product. Going from something raw to a finished product would almost always have a cost, that would be the conversion cost. The cost at which it takes to convert from one thing to another.


Is Amortization of patents on factory machine a prime or conversion product cost?

Conversion


How do you define food cost?

FOOD COST- ($)COST YOU SPEND ON FOOD( WHICH IS ALOT) :D