Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:
A)Raw materials sold.
B)Chargeable materials.
C)Work in process.
D)Indirect materials.
E)Direct materials.

Question

Quizplus · Accepted Answer

Direct materials are tangible components of the finished product that can be separately and readily traced through the manufacturing process. These materials have a significant impact on the cost of production and are easily identifiable as part of the final product.

Raw Materials That Are Tangible Components of the Finished Product