If the Cost of a Direct Material Is a Small

question 94

Multiple Choice

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

• A) direct labor cost
• B) selling and administrative costs
• C) miscellaneous costs
• D) factory overhead cost

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Definitions:

Universal

A characteristic or condition that applies to everything or everyone.

Rascally

Describing behavior that is playfully mischievous or dishonest, often in a benign or amusing way.

Rabbits

Small mammals with long ears, characterized by their fast reproduction and commonly found in several parts of the world.

Proposition

A declaration that signifies an opinion or judgment.