COST ACCOUNTING
STANDARD COSTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The direct materials standard costs would not be expressed in
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Kilogram
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Liter
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RM
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Meter
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Explanation:
Detailed explanation-1: -Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product (otherwise they are considered to be joint costs).
Detailed explanation-2: -Labor costs and overhead costs are not considered direct material costs.
Detailed explanation-3: -1. Direct material. 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.
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