A Chair Manufacturer Makes Custom Chairs Using Hand Tools,wood,glue,and Varnish

question 8

Multiple Choice

A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?

• A) The costs of wood and glue would be treated as direct costs.
• B) Wood, glue, and varnish would all be direct materials.
• C) Wood would be accounted for as a direct cost, and glue and varnish as indirect costs.
• D) The concepts of direct and indirect costs are not applicable here.

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