Which of the following should not be included in direct materials costs for a bike manufacturer?
A)Tires.
B)Machine lubrication oil.
C)Seats.
D)Pedals.
E)Handlebars.

Question

Quizplus · Accepted Answer

Machine lubrication oil should not be included in direct materials costs because it is a component of indirect materials costs. Indirect materials costs refer to materials that are necessary for the manufacturing process but do not form part of the final product. The other choices, including tires, seats, pedals, and handlebars, are all direct materials costs because they form part of the final product.

Which of the Following Should Not Be Included in Direct