When are a product's direct materials cost most likely to be locked in?
A)when the product is designed
B)when purchasing commits to buying the materials
C)when the bill for the materials is paid
D)when the materials are used in production
E)when materials are received from the supplier

Question

Quizplus · Accepted Answer

The direct materials cost is most likely locked in when the product is designed because the design determines the type and quantity of materials needed, which influences the cost.

When Are a Product's Direct Materials Cost Most Likely to Be