Which statement describes direct materials in a manufacturing setting?
A) Direct materials are used to determine total inventoriable product costs.
B) Direct materials are used to determine total manufacturing overhead.
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 the raw materials and components that are directly used in the production of a product. These materials can be easily traced to the finished product, and their cost is included in the total inventoriable product costs.

Which Statement Describes Direct Materials in a Manufacturing Setting