Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?
a. assembly labor's wages
b. administrative salaries
c. raw lumber
d. accounting department costs

Respuesta :

a. assembly labor's wages.

Based on the options provided, the cost that would be included in the group of conversion costs for a paper manufacturer is:

a. assembly labor's wages - Assembly labor refers to the labor required to assemble or manufacture the finished product, so the wages of assembly labor would be considered a conversion cost.

Assembly Labor's Wages

Assembly labor refers to the labor required to assemble or manufacture a finished product. In the case of a paper manufacturer, assembly labor might include the labor required to operate machinery and equipment that transforms raw materials (such as wood pulp or recycled paper) into finished paper products. Assembly labor might also include tasks such as packaging and labeling the finished products for shipment.

The wages of assembly labor would be considered a conversion cost because they are a direct cost of converting raw materials into a finished product. Conversion costs are the costs incurred by a company in the process of converting raw materials into a finished product, and typically include the cost of labor and materials required to complete the production process.

In addition to the wages of assembly labor, other examples of conversion costs for a paper manufacturer might include the cost of materials such as chemicals and energy used in the production process, as well as the cost of maintaining and repairing machinery and equipment used in production.

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