Materials That Are Used in Support of the Production Process

question 110

Multiple Choice

Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:

• A) Secondary materials
• B) General materials
• C) Direct materials
• D) Indirect materials
• E) Materials inventory

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Project Capital Spending

Expenditures for acquiring, upgrading, or maintaining physical assets such as property, industrial buildings, or equipment to increase the scope of operations.

Sales

The cumulative revenue generated through the sales of products or services during a designated timeframe.

Costs

The amount of money required to produce or acquire goods or services, including manufacturing, purchasing, and marketing expenses.