Which of the following costs would be included as part of direct materials in the production of an automobile?
A)glue for a sticker applied to the automobile
B)steel
C)gasoline used to fuel machines in production
D)none of these

Question

Quizplus · Accepted Answer

Direct materials are items that are used to create a product and are directly traceable to that product. Steel is a material used in the construction of automobiles and is directly traceable to the finished product. Glue for a sticker and gasoline for machines are indirect materials and would not be included in direct materials.

Which of the Following Costs Would Be Included as Part