Which of the Following Would Be an Example of a Direct

question 181

Multiple Choice

Which of the following would be an example of a direct materials cost?

• A) engine on an airplane
• B) screws used to manufacture a lighting fixture
• C) glue used to build cabinets
• D) nails used to manufacture a table

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Definitions:

Needs And Wants

Basic requirements for survival (needs) contrasted with desires that can be fulfilled through purchasing goods and services (wants).

Managerial Accounting

Managerial accounting involves the processes of identifying, analyzing, recording, and presenting financial information that can be used internally by managers for planning, decision-making, and operational control.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions relating to a business, following standardized guidelines.

Raw Materials Inventory

The total cost of all components that are intended to be used in the production of a product but have not yet been used.