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Conversion costs are__________.

a. direct material, direct labor, and manufacturing overhead.
b. direct material and direct labor.
c. direct labor and manufacturing overhead.
d. prime costs. period costs.

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oreoluwa2001ng

Answer: C - direct labor and manufacturing overhead.

Explanation: Conversion costs are costs incurred in bringing raw materials to finished products. Its a cost that includes direct labour and manufacturing overheads because they both relate directly to the conversion of the raw materials to finished products.

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