Answer:
Conversion costs is important because it include direct labor and overhead expenses incurred as a result of the transformation of raw materials into finished products. Operations managers also use conversion costs to determine where there may be waste within the manufacturing process.
Explanation:
Conversion costs is a term used in cost accounting that represents the combination of direct labor costs and manufacturing overhead costs. In other words, conversion costs are a manufacturer's product or production costs other than the cost of a product's direct materials.
