Direct Materials Used Reflects

question 268

Multiple Choice

Direct materials used reflects

• A)materials used to package the finished product for distribution/shipping to the customers.
• B)all materials used throughout the company including but not limited to office materials, shipping materials, all raw materials, etc.
• C)materials directly traced to the finished product that are requisitioned into the factory to be used in production.
• D)materials acquired for use in production but that have not been requisitioned by the production supervisor yet.

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Definitions:

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.

Warranty Claims

Requests made by customers for the repair or replacement of products under the terms of a warranty agreement.

AASB 137

The Australian Accounting Standards Board standard that deals with Provisions, Contingent Liabilities, and Contingent Assets.

Provisions

Liabilities of uncertain timing or amount, recorded to account for future obligations or potential losses.