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16 Aug 2018
Explain why conversion costs below are listed as direct costs asif you are responding to an employee memo.
Specifically: a new assistant production manager whose priorexperience is with a company that produced goods to order emailsyou questioning some cost classifications on an internal report. Hespecifically wants to know why some costs of materials that do notactually become part of the finished product, including some laborcosts not directly associated with producing the product areclassified as direct costs.
Your company engages in continuous production of homogeneousproducts that go through various production processes.
Explain why conversion costs below are listed as direct costs asif you are responding to an employee memo.
Specifically: a new assistant production manager whose priorexperience is with a company that produced goods to order emailsyou questioning some cost classifications on an internal report. Hespecifically wants to know why some costs of materials that do notactually become part of the finished product, including some laborcosts not directly associated with producing the product areclassified as direct costs.
Your company engages in continuous production of homogeneousproducts that go through various production processes.
Reid WolffLv2
19 Aug 2018
