Which of the Following Is an Example of Direct Materials

question 247

Multiple Choice

Which of the following is an example of direct materials cost for an automobile manufacturer?

• A) cost of oil lubricants for factory machinery
• B) cost of wages of assembly worker
• C) salary of production supervisor
• D) cost of interior upholstery

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Definitions:

Controlling Costs

Involves implementing measures and techniques to monitor and reduce business expenses to improve profitability without compromising the quality of goods or services.

Pricing Decisions

Pricing decisions involve determining the price at which a product or service will be offered to the market, taking into account costs, competition, and demand.

Finished Goods Inventory

Completed products that are ready for sale but have not yet been sold.

Job Cost Sheets

Detailed records that document the costs associated with a specific job or project, including materials, labor, and overhead.