{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Assignment # 3 (Chapter 2 Definition)

Assignment # 3 (Chapter 2 Definition) - Naiya Amin ACCT...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Naiya Amin ACCT 3240*01WC Assignment # 3 September, 13 th 2010 Definitions: 1. Conversion Costs: Conversion Costs are also known as manufacturing costs other than direct material costs. Conversion costs represent all manufacturing costs incurred to convert direct materials into finished goods. For example, Conversion Costs = Direct Manufacturing labor costs + Manufacturing overhead costs Conversion cost are also direct and indirect expenditure incurred in converting a currency , material , or security from one form or type into another. Conversion cost of moving from one kind of equipment or production process to another. Conversion cost is high when converting from a manual system to a computerized system. It includes the cost of new equipment plus training. 2. Cost Allocation: Cost Allocation is a term that is used to describe the assignment of indirect costs to a particular cost object. Cost allocation is the assigning of a common cost to several cost objects. For example, a company might allocate or assign the cost of
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern