Meaning of “conversion cost” in the English Dictionary

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"conversion cost" in Business English

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conversion costnoun [ C ]

uk us

ACCOUNTING, PRODUCTION the cost of making products from raw materials during a production process:

Direct labor is counted as both a prime cost and a conversion cost.

FINANCE the cost of changing from one type of currency, share, etc. to another:

You will have to pay a currency conversion cost to convert back to sterling.

(Definition of “conversion cost” from the Cambridge Business English Dictionary © Cambridge University Press)