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In previous chapters, we treated direct labor and manufacturing overhead separately. In process costing they are sometimes combined into conversion costs, a topic we covered
In previous chapters, we treated direct labor and manufacturing overhead separately. In process costing they are sometimes combined into "conversion costs", a topic we covered in chapter 2. What kind of factors would determine which method was most appropriate? What would you need to consider in making this decision? How would it affect product cost if you chose one method over another?
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