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Conversion cost pricing

<p><em><strong>A. Places minimal emphasis on the cost of materials used in manufacturing a product. </strong></em></p> <p><em><strong>B. Could be used when the customer furnishes the material used in manufacturing a product.</strong></em></p> <p><em><strong>C. Places heavy emphasis on indirect costs and disregards consideration of direct costs. </strong></em></p> <p><em><strong>D. Places heavy emphasis on direct costs and disregards consideration of indirect costs.</strong></em></p>

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Question added by Deleted user
Date Posted: 2015/01/09
Muhammad Umair Arain
by Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC

answer will be the B one,,,,,,

Sankar potty
by Sankar potty , CFO , Salem Mohsen Al Harty Estt.

Ans B  used when we are to  manufacture for others in satiation of the  PLF(plant load factor)

Mohamed Maher,  CIFR
by Mohamed Maher, CIFR , GM| business development | digital transformation , Alkhanjar Perfumes

" B " is correct , when the customer furnishes the material it will be much appropriate .

Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

B. Could be used when the customer furnishes the material used in manufacturing a product.

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