Which of the following is true of a direct materials cost?
A) A direct materials cost is included in factory overhead.
B) It is sometimes called factory burden.
C) It is not a significant portion of the total product cost.
D) It is the cost of any material that is an integral part of the finished product.

Question

Quizplus · Accepted Answer

A direct materials cost is the cost of any material that is an integral part of the finished product. It is not included in factory overhead and is a significant portion of the total product cost. It is not the same as factory burden, which refers to indirect costs associated with the manufacturing process.

Which of the Following Is True of a Direct Materials