If the cost of direct materials is not a significant portion of the total product cost, it may be classified as:
A) direct labor costs.
B) selling and administrative costs.
C) miscellaneous costs.
D) factory overhead costs.

Question

Quizplus · Accepted Answer

If the cost of direct materials is not a significant portion of the total product cost, it may be classified as factory overhead costs. Factory overhead costs include all indirect costs associated with the production process, such as rent, utilities, and equipment depreciation.

If the Cost of Direct Materials Is Not a Significant