Materials Must Have Which Two Qualities in Order to Be

question 11

Multiple Choice

Materials must have which two qualities in order to be classified as direct materials?

• A) They must be classified as both prime costs and conversion costs.
• B) They must be introduced into the process in both work in process inventories and finished goods inventories.
• C) They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
• D) They must be an integral part of the finished product and a significant portion of the total product cost.

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Definitions:

Total Gain

The complete profit or advantage obtained from an investment or a series of transactions.

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Corporate programs allowing employees to buy shares of the company's stock, often at a discount, as part of their benefits.

Performance Incentive

A reward system designed to enhance motivation and improve worker productivity by providing bonuses or other benefits linked to achievement of specific goals.

Retention Tool

Strategies or practices employed by organizations to keep valuable employees and reduce turnover.