For a printing company, the cost of paper is classified as a:
A)direct material cost
B)direct manufacturing labor cost
C)manufacturing overhead cost
D)period cost

Question

Quizplus · Accepted Answer

The cost of paper is a direct cost of producing printed materials. Direct material cost is the cost of raw materials that are directly used in the production process. Since paper is a raw material used in the production process of printing, it is classified as a direct material cost.

For a Printing Company, the Cost of Paper Is Classified