Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 39

How does the accountant know what to record for direct materials for a job or a client? For direct labor cost?

Step 1 of 3

Direct Material:

Direct Materials are the raw material that used up in the manufacturing of the product. These are the costs that directly affect the production of the company. These costs form an important part of the production so company should take a look towards the prices of the raw material to control the costs of the company.