Which Statement About Conversion Costs Is Correct, Using the Three-Part

Multiple Choice

Which statement about conversion costs is correct, using the three-part classification of costs?

A) They include only direct manufacturing labour costs.
B) They include only indirect manufacturing costs.
C) They include both direct manufacturing labour costs and manufacturing overhead costs.
D) They include indirect manufacturing labour costs but not manufacturing overhead costs.
E) They include indirect manufacturing costs and direct manufacturing labour costs.