Which of the following should not be included in direct materials costs?
A)Invoice costs of direct materials.
B)Delivery charges on shipments to customers.
C)Materials storage costs.
D)Materials handling costs.
E)Incoming freight charges.

Question

Quizplus · Accepted Answer

Delivery charges on shipments to customers are not included in direct materials costs because they are considered selling expenses instead. Direct materials costs include only the costs directly associated with the production of a product, such as the cost of raw materials, incoming freight charges, materials handling costs, materials storage costs, and invoice costs of direct materials.

Which of the Following Should Not Be Included in Direct