what is the difference between conversions of accounting?
Answers
Answer:
Conversion costs are the costs involved in converting the direct material into the product and therefore are direct labor and manufacturing overhead. ... Conversion costs are the direct labor and manufacturing overhead involved in the production process and exist regardless of the accounting system used.
Explanation:
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Explanation:
Conversion costs are the costs involved in converting the direct material into the product and therefore are direct labor and manufacturing overhead. ... Conversion costs are the direct labor and manufacturing overhead involved in the production process and exist regardless of the accounting system used.
Prime Costs vs. Conversion Costs:
An Overview
Prime costs and conversion costs are relied upon heavily in the manufacturing sector as a metric to determine efficiency in the production of a specific product. Prime costs are defined as the expenditures directly related to creating finished products, while conversion costs are the expenses incurred when turning raw materials into a product
Prime costs and conversion costs include some of the same factors of production expenses, but each provides a different perspective of production efficiency.