The Standard Direct Materials Quantity Does Not Include Allowances for

question 39

Multiple Choice

The standard direct materials quantity does not include allowances for

• A) unavoidable waste.
• B) normal spoilage.
• C) unexpected spoilage.
• D) all of the above are included.

---

Definitions:

Variable Production Costs

Costs that vary directly with the level of production, such as raw materials and direct labor.

Product Costs

All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead. Also see Inventoriable costs.

Absorption Costing

A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in unit product costs.

Manufacturing Costs

The total expense involved in the manufacture of a product, including direct materials, direct labor, and manufacturing overhead.