When Are a Product's Direct Materials Cost Most Likely to Be

question 108

Multiple Choice

When are a product's direct materials cost most likely to be locked in?

• A)when the product is designed
• B)when purchasing commits to buying the materials
• C)when the bill for the materials is paid
• D)when the materials are used in production
• E)when materials are received from the supplier

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Definitions:

Claim Messages

Communications asserting a right or demand for action or compensation, typically in the context of customer service or insurance.

Positive Manner

An approach or method characterized by optimism, constructiveness, or affirmative attitude.

Replacement

The act of substituting one item or person for another, often to fill a vacancy or to update with something newer or better.

Favorable Response

A positive or supportive answer, reaction, or reply.