Which of the Following Items Would Not Be Classified as Direct

question 117

Multiple Choice

Which of the following items would not be classified as direct material for an automobile manufacturer?

• A)Steel
• B)Paint
• C)tires
• D)Screws

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Definitions:

Inventory

Inventory refers to the goods and materials that a business holds for the purpose of resale or production, classified as current assets on the balance sheet.

Common Stock

An equity investment representing ownership in a company; holders typically have voting rights and may receive dividends.

Fair Value

A valuation of an asset or liability, determined by the current market prices in a lively market.

Consolidated Buildings

Buildings and related assets that are grouped together on a company's balance sheet after it has combined its financial statements with those of its subsidiaries.