Both Direct Materials and Indirect Materials Are

question 26

Multiple Choice

Both direct materials and indirect materials are

• A) raw materials.
• B) manufacturing overhead.
• C) merchandise inventory.
• D) sold directly to customers by a manufacturing company.

---

Definitions:

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage over the cost.

Rotary Tools

High-speed, handheld power tools that rotate a bit or accessory for performing various tasks such as cutting, carving, sanding, and polishing.

Frequent Purchaser Program

A loyalty scheme designed to reward customers who regularly buy goods or services from a particular business.

Quantity Discounts

Price reductions offered to buyers purchasing in large volumes.