BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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engine on an airplane
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lubricant used to manufacture a lighting fixture
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glue used to build cabinets
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nails used to manufacture a table
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Detailed explanation-1: -Engine on airplane is the correct answer. Direct material cost : Direct material…
Detailed explanation-2: -Direct material costs are the costs of raw materials or parts that go directly into producing products. For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys.
Detailed explanation-3: -Direct material is the physical items built into a product. For example, the direct materials for a baker include flour, eggs, yeast, sugar, oil, and water.
Detailed explanation-4: -Examples of direct materials Automobile manufacturers need steel, rubber and plastic to build vehicles. These materials are direct materials because they’re reflected in the final product.
Detailed explanation-5: -Direct material can be classified as. Semi-variable cost.