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:

Seal

Historically, a device or substance used to stamp or mark documents, implying authenticity and intention to be legally bound.

13th Century

A period extending from the year 1201 to 1300, marking significant historical, cultural, and technological advancements.

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A legal document that represents the ownership of property and transfers the title from one party to another.

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A legal principle requiring certain contracts to be written and signed to be enforceable.