Which statement describes direct materials in a manufacturing setting?
A)Direct materials are used to determine total manufacturing overhead.
B)Direct materials are used to determine total inventoriable product costs.
C)Direct materials cannot be separately and conveniently traced.
D)Direct materials do not become part of the finished product.

Question

Quizplus · Accepted Answer

Direct materials are materials that are easily and conveniently traceable to the finished product. These materials are used in determining total inventoriable product costs and are a significant component in calculating the cost of goods sold.

Which Statement Describes Direct Materials in a Manufacturing Setting